In 2013, more and more people are opting to jump on the investment property bandwagon.

There are number of reasons for this.

One is that the Reserve Bank of Australia decreased the official cash rate by 0.25 points on August 7 to the historically low level of 2.5 per cent.

The last time Australia saw the official cash rate drop was in May 2013, when it also went down by 0.25 points.

Another is that variable and fixed interest rates are also sitting at exceptionally low levels.

In a September 4 statement, the Real Estate Institute of Australia revealed that both had fallen significantly over the June quarter.

If you are thinking about buying investment property, you may also want to think about purchasing landlords insurance.

You may put a significant amount of effort into minimising risk of accidents in your investment property –  for instance, carefully screening the tenants you select to live there.

However, you can never be completely sure they won’t damage it – after all, accidents happen.

There are a range of cover options available when it comes to landlords insurance.

If you organise contents cover, this can assist you with the cost of replacing objects inside the property, such as carpet and furniture, that are damaged.

You can also take out a landlords insurance policy that protects you against intentional damage caused by your tenants or theft.

In addition to this, you can arrange cover that will help you financially in the event that your tenants default on rent, or are unable to live in the property for a period of time.

There is also liability insurance, which will cover you if you are ever held responsible for injuring someone else or damaging their property.

You’re making a big financial commitment when you purchase investment property – MGA Insurance Brokers can help you make sure it’s protected with landlords insurance.