A lot of people would make the assumption that all property insurances are the same, and if this is the case, insurance might come across as something they don’t need and just an expense that they are paying in advance like planning for a home renovation. Understanding the difference between building and landlord insurance as well as how it differs from home insurance will help you cover the specifics of what your building or your home needs. Here are the things you need to know and why knowing them matters.
What is building and landlord insurance?
Building insurance is a type of insurance coverage that supports and covers the physical structure of your property, like the walls, floors, roof, and spaces within that building, as well as the utilities available to that space. And for building owners, this is important because of calamities and disasters that might come unexpectedly and wreak havoc on the structure.
At the same time, landlord insurance is a type of insurance when renting out a property, especially if some real-deal situations come into play, especially loss of income in rent, damage caused by your tenants, and other liabilities that you need to be responsible for.
What is Home Insurance?
On the other hand, home insurance covers both your home or the structure as well as your belongings. While it is good coverage for those who want to own a home, as theft and natural calamity damage are some of the inclusions, it is intended only for homeowners and not for renters and landlords.
So, which one do you need?
Depending on the situation you are currently in, having insurance coverage for any type of home structure will always be significant to future-proofing your space. The important thing is to assess which type you are residing in and the situation you’re currently in.
Common Mistakes to Avoid
One of the biggest mistakes of anyone looking for insurance policies is that they feel like everything is already covered. It’s good to check the inclusions first, ask questions with your policy maker if you need to, and finalise the coverage with the policy that suits your property best.
It’s good to watch out for protection against issues with your tenant, the contents of what insurance is included specific to landlords, and the value of your belongings.
The Lifestyle Factors In, Too
The climate in Australia is harsh, and this is important to note because of the natural causes that you need to take into consideration within your insurance coverage. Your insurance provider will help you assess the risks, what needs to be included, and which are of a lower priority so that you can be sure of what you need now and in the future.
Protect your property, investment, and peace of mind.
The important thing here is to do your research, read the coverage policies that are handed to you, and adjust when needed. This is only a simple step, but it makes a massive difference, especially if things go wrong.