Insurance is critical for long-term investment success

Harriett Fenney, who heads up Eview Group - Southern Peninsula's rental department says having appropriate insurance is an absolute must for all investors. "Landlord insurance is a requirement if we are to manage a property on a permanent basis and I always recommend landlords do their research and do a really thorough job," she said. Harriett insists research is critical for all investors to ensure they receive the best protection for their investment in the long-term. "I've had landlords that have owned investment properties for thirty years and have never made a claim but haven't kept up to date with the fine print. It's important to remember that just like any insurance - it can be subject to change." Harriett references a particular long-term landlord as a case study on how things can go wrong even when you have insurance in place. "In one particular incident the tenant left the TV on and briefly left the property. When they came back about fifteen minutes later the whole front of the house was on fire - it was an electrical fault from the antenna connection point. "No one was to blame - it was just one of those things." When it came to the insurance claim, the fine print had changed substantially over the years and meant the owner was liable for the cost of the excess plus the replacement of blinds, painting and floor furnishings. These expensive items were no longer covered in the landlord insurance policy and they should have been. So instead of it being a case of fire damage with one excess - the owner was out of pocket thousands of dollars in replacement costs. "This really goes to show how important it is for landlords to do their research," Harriett said. "Like every other type of insurance whether its home and contents or car insurance, you have to read your policy annually and make sure that it's all relevant and it's what you need. "Each year the landlord has to make sure the policy is right for them. We ask that a copy of the policy be sent into our office so if there are any issues we can assist the landlord and insurance assessor to make things easier and less stressful." Harriett says that it's important to look out for the best of the best when it comes to insurance. "There are two brilliant insurance companies that I've used on my own investment properties over the years - one is Terry Scheer and the other is EBM," she said. "I can say from personal experience and business experience that I haven't ever had a problem with a claim. You can find more information @ / OR if you don't have time you can contact Eview Group - Southern Peninsula and we can help provide information so you can make an informed decision. Harriett says that a key difference with Eview Group Southern Peninsula is the level of service provided when it comes to insurance matters. Most property managers don't have the experience or the time and can't really assist landlords when it comes to claim time. Our property team will go above and beyond to ensure the process is as smooth as possible," she said. "If you want to protect yourself you have to have insurance - for a couple of hundred dollars a year it's a fantastic investment. "We make sure we're there at the times you need us to make it less stressful." For more information contact Harriett Fenney on 03 5985 0000.

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