Imagine receiving a call from the Police to advise you that your Perth rental property had been completely destroyed by fire, and there was nothing left to salvage.
How would you cope?
You have a mortgage to keep paying, no income from the property, massive repairs to make if that is even possible… Your stomach churns as the panic of not knowing where to start sets in.
This actually happened to one of our landlord’s
One of our Landlords received a call exactly like that and the extent of the damage is clearly evident in the photos included.
The Property Management team at Investors Edge was able to draw on its massive depth of experience to comfort the owner, reassure him that the arsonists had inadvertently done him a favor, and then get on with dealing with the insurance company claims on his behalf.
By providing our Landlords with information and guidance in securing the best possible insurance policies to protect their rental properties, they are able to rest easy knowing that their investment properties are in safe hands.
A silver lining to an initial black cloud of smoke
In the case of this property, the owner received a payout on the insured value of the building PLUS 52 weeks rent. By increasing his mortgage by only a small amount he was able to re-build a lovely new house of much greater value than the old one, claim higher depreciation for years to come and attract a much better quality of tenant at substantially higher rent , his previously negatively geared property is now positively geared and putting money back in his pocket each week! What a fantastic silver lining to that initial black cloud of smoke.
Check your insurance now!
Please check your own insurance policies – read the PDS’s, as tedious as it is and make sure you really are covered for everything you need to be. Compare companies and don’t be afraid to move if you find a policy with better coverage.
At minimum, you should have a building policy and a very good Landlord Protection policy.
Plus remember that despite having all the insurances in the world, you need a Property Manager that has the experience to deal with any situation because there are many risks for landlords in owning investment properties.