The banking Royal Commission’s investigation into the insurance sector discovered widespread misconduct and breaches of insurance code practise. An issue that was raised was under insurance. Policy holders were led to believe that their policies covered the full replacement of their properties but their cover fell short when they made a claim.

Research found that one in 20 Australian homes are not insured and many home owners fail to renew every year. A survey also found 83% of Australians are under insured for home and contents. It’s always recommended you check annually that your insurance is up to scratch.

Property investors should regularly check their insurance cover. It’s important to know the true replacement cost of your property and assets to ensure you are adequately covered. An over insured property can also lead to owners outlaying more money on higher premiums that provide unnecessary cover. In the case of damage, investment property owners may be entitled to claim additional tax deductions. Always check with your accountant.

From the desk of Nonie Ressler.

“Find models of excellence. Find the best and do what they do.”