Determining How Much Insurance is Needed

If ever there was a reminder of the importance of insurance on a home or investment property, it would be the number of storms, cyclones and floods that have recently impacted Queensland.

Insurance is acknowledged as being important, but many people are often unsure of how much they need.

A number of different types of insurance are available, and the most appropriate policy is dependent on the type of dwelling, its location and whether it is a home or an investment of the policy holder.

It is very important that owner-occupiers and property investors have building and contents insurance. Insurance of this type covers the actual building, together with its chattels or contents, including: curtains, tiles and carpets.

Those with property investments need to have landlords’ insurance, and this should be held in addition to building and contents insurance. Insurance cover of this type provides protection for the specific risks that come with ownership of a rental property, such as: malicious damage caused by tenants, various types of accidental damage and loss of rental income through damage caused to a property or a tenant absconding.

Strata insurance should be held by those who own apartments (regardless of whether they are owner occupied or purely for investment). In most circumstances, the body corporate manager oversees strata insurance with payment being made by apartment owners for levies charged on a quarterly basis.

However, all apartment owners need to organise their own landlords’ insurance and contents insurance policies.