Do you have Landlord Insurance?
- Thread starter jim1964
- Start date
For the sake of $255 per year versus the potential bill of who knows what,but many many thousands of dollars(and i have been there) i see it as a small cost of doing business.
hell freaking yes!
Insurance companies make money by insurances costing more than they pay out. So on average you're better off by not being insured. Obviously you still want to safeguard against events that could ruin you though.
So I would rather face the prospect of potentially being out of pocket a few thousand dollars than paying over $2k (multiple properties) a year in insurance.
Obviously everyone has to decide this for themselves, but this is how I see it. And I don't play lotto or gamble (unless the odds are in my favour) for the very same reason.
Only if it could cost me lots of money. So my car is third party property only. So if I cause a crash, I could lose my car plus $1000 excess, but that's it, nothing that could ruin me financially.
For holidays, I try and book with a credit card that gives me travel insurance, but I'm really only interested in the medical insurance part. If I lost my passport and had to rebook flights, etc, it again wouldn't be a life changing amount of money.
Health insurance, yes, I've got decent hospital cover, but few extras.
I've got home and contents insurance for my PPOR as well, but I don't have silly things like pet insurance or anything of the kind. Nor do I have life insurance, if I die my fiance can sell all my IPs and have the PPOR pretty much debt free. Might not be as much as some other widows would get, but for a girl in her mid/late 20s, it's fine. I might change this once we have children, depending on the portfolio value then.
Exactly my point on insuring.I thought like you once, 1 bad tenant with defaults and massive property damage raked up a $18,000 bill.
Ouch, that would definitely hurt! Didn't your building insurance cover the damage though? I'm pretty sure most of them protect you against some malicious damage.
But even then, $18k, while it is a lot, is still surmountable.
I voted yes but I only have LL insurance on one of them - in Frankston. In the other property I'm extremely fussy about who goes into my nice little renovated apartment. Ironically, have lost quite a few weeks of rent being so fussy. 
Like spludgey, I keep insurance to the minimum.
Health insurance - yes, definitely. We know 100% that it'll be used eventually.
3rd party only on the car. House and contents - ha ha why? Definitely not travel insurance. Pets - of course not.
When I first got a car many many moons ago, I insured it comprehensively and had a few accidents. I most certainly didn't want to crash. Once I stopped insuring, I stopped having accidents. Weird but true.
Like spludgey, I keep insurance to the minimum.
Health insurance - yes, definitely. We know 100% that it'll be used eventually.
3rd party only on the car. House and contents - ha ha why? Definitely not travel insurance. Pets - of course not.
When I first got a car many many moons ago, I insured it comprehensively and had a few accidents. I most certainly didn't want to crash. Once I stopped insuring, I stopped having accidents. Weird but true.
I'm a gambling man, but this is a gamble I would never take.
Instead of a typical gamble play where it's generally Low Risk (stake)/High Reward, this is the exact opposite.
Here you are getting High Risk/Low Reward, where your reward is saving the insignificant premium paid.
It's your game to play your way, you could get lucky.
As you say, the odds are actually in your favour, but this is a business and deductions/cash flow comes into play also.
Voted no, not worth it to me. In over 10 years of being a landlord i had one tenant run off owing $1000 dollars. Have saved easily over 20k in that time by not paying landlord insurance. I insure the building only.
Don't forget if you make a claim it then effects all your premiums, the insurer makes back not only what they pay out but a profit on all your other properties too. Also, go read the horror stories of when people try and actually make a claim. They dont cover everything people think they do.
Don't forget if you make a claim it then effects all your premiums, the insurer makes back not only what they pay out but a profit on all your other properties too. Also, go read the horror stories of when people try and actually make a claim. They dont cover everything people think they do.
Of this amount,around $3,000 was tenant default from memory,which was fair coin in 2004.
actually, I lied, I dont landlord insure one property to a property with an old woman tenant who has been there for 5-7 years, I guess im taking a risk for this one, fingers crossed
if all my tenants had been there for 5 years plus without any problems I would probably skip LL insurance
I too am a bit of gambling man, but not over the top
if all my tenants had been there for 5 years plus without any problems I would probably skip LL insurance
I too am a bit of gambling man, but not over the top
Even if your tenant dies, and investigation will need to take place for weeks, or months, or.... I could name so many other reasons...
I wonder do you have insurance on your car?
