The risk of being sued by someone who has suffered personal injury in your property is still very much a reality.

The courts recognize that private property owners have an obligation to be aware of any hazards on their property and that they need to provide ample warning of these dangers.

If your investment property is being managed by a Property Manager, they will have professional indemnity insurance to back them up in the case of their negligence.

However if someone has suffered personal injuries they can also sue you, as the owner.

This is why you need public liability insurance which covers you in the case of slip and fall accidents.

The cost of this insurance is tax deductible.

If you engage trades people to work in and around your home, they will be protected if they have the appropriate licences and are registered with the building authority.

Beware of people who come to do work and do not, hold any registration and insurance as this is where the greatest risk lies.

A few insurance companies offer ‘domestic worker protection” under your homeowner insurance policy.

In order to reduce your risk, it is better to acquire your properties in the name of a company acting as trustee for a trust.

You would control the company trustee by being the director and shareholder, but you wouldn’t own it, thereby liberating you from any personal liability.