What are the risks associated with not having proper non-strata insurance?

Non-strata insurance is crucial for landlords of non-strata residential buildings in Australia who want to mitigate potential financial risks. With proper coverage, landlords may have the correct insurance, which can lead to heavy financial losses. 

Often, these landlords end up with a single-tenant landlord policy that fails to cover the full value of all the units in the block. In other instances, landlords may be relegated to an expensive commercial insurance package, which often includes unnecessary coverages for residential blocks. 

Lack of proper non-strata insurance makes it easier for landlords to manage unexpected damages or losses due to fires, floods, theft, or tenant misconduct. The out-of-pocket cost for such incidents can be steep and significantly impact the financial stability of the landlord. 

Without coverage for loss of rent, landlords must bear the brunt if a tenant cannot pay rent. This could lead to severe impacts on their cash flow. 

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