What do you need to know about protection of a residential property investment?
The better landlord policies cover accidental damage up to the full sum insured. The fundamental difference between these policies and the “standard” ones, which cover nominated events is that under the accidental damage policy, everything is covered unless it’s excluded, whereas the other type specifically nominates only the events which it does cover. In the first type, the onus of proving that an exclusion applies is on the insurer, whereas you have to prove the damage was one of the nominated events under the “standard’ policy and also that it is not otherwise excluded…potentially a much more difficult task.
These better policies will also include cover for malicious damage by tenants and protection when a tenant leaves owing rent.
If you own a unit, it is important to obtain cover on the contents…even though there may only be carpets or curtains, so that you gain liability cover for events occurring inside the unit. Although the body corporate policy covers events occurring in common areas, it will not pick these up inside the unit and generally not issues associated with balconies, which are exclusive to individual units.