Insurance is required for investment property ?

Ausshirley

Just bought an investment property,  now is near the settlement day.  The loan is with CommonWealth Bank.
I got a call from CommonWealth Bank insurance staff who is  suggesting me to buy two part of insurance for the property 1)Insurance before settlement, 2) insurance after settlement.

Questions:  
   Are these two parts insurance are normally required or optional? Or different bank with different policy?  Urgently need the answers. Thanks in advance.
   I personally try not to buy it to save some money, but not sure if Ok not to buy them.

Devil_Star

I reckon you should get the PDS and read through it before you make a decision of purchase. Personally I think building insurance is a must but mortgage repayment insurance is optional.

patricb

Also landlord insurance is optional in this case.

qqyang

Westpac的landlord insurance很便宜的，我买了才292一年，

n95

最好买一个吧

qqyang

买了能扣税，税后才化200出头，你想了，要是房客搞破坏，赖租金，200多你还不够出庭费+交通费啊。

blahblah

With the landlord insurance, you need to make sure there is a signed lease with the tenants. Otherwise you may not be able to claim the lost from default rent.

However I am not sure what happen after the least finished? Do they need another signed lease?

Also Westpac requests the building insurance as well for the settlement. However you can cancel the policy once settlement and change to any other better one you like. Balance on your policy should be refunded, at least Westpac does.

Cramzhang

allianz currently has 3-month free cover before settlement.
you can try this one.

ManauDou

原帖由 qqyang 于 10/12/2009 13:13 发表
Westpac的landlord insurance很便宜的，我买了才292一年，

请问292是包括租金的么？我问了几个保险都是300多一年呢？

Ausshirley

Finally, only bought the basic BuildingInsurance to start with.  Thanks for all the response.

BTW.
For landlord insurance,  wondering if only useful when you are trying to rent out the property by yourslef? If you have an real estate agent to handle your property,  no use to have it, right?

Devil_Star

原帖由 Ausshirley 于 2010-1-15 19:35 发表
Finally, only bought the basic BuildingInsurance to start with.  Thanks for all the response.

BTW.
For landlord insurance,  wondering if only useful when you are trying to rent out the property  ...

Real Estate Agents can NOT guarantee that your tenants will pay you what you are entitled to. For example if your tenants vandlise your property and run away, real estate agents will not be responsible for the damage. So that's one of the situations you'd wish you were covered by the landlord insurance.

Ausshirley

Thanks.  

Looks  I should buy the Landlord insurance,  and  it's better to find an agent to manage the investment property than to do it by yourself.  Probably that's the way I should start with.