Depreciation and Insurance Checks for Your Investment Property

Tax time tends to focus our attention on numbers. Income, expenses, deductions. But it is also a useful moment to step back and check that the foundations supporting your investment property are still working properly.

Two areas that are often overlooked are depreciation schedules and insurance cover. Taking the time to review your investment property depreciation and insurance each year can help protect your returns and prevent unpleasant surprises later.

Why Depreciation Is Worth Revisiting

Many investors organise a depreciation schedule when they first purchase a property and then rarely think about it again.

A depreciation schedule outlines how the building structure and certain assets within the property decline in value over time. That decline can often be claimed as a tax deduction across several years, which can help improve the overall financial performance of the investment.

Appliances and installed assets are a common example. Property guidance notes that items such as dishwashers, washing machines, air conditioners and ovens are considered depreciating assets. As explained in property tax advice, “these appliances decline in value and landlords can claim this depreciation over several years, usually in line with each asset’s effective life (White, 2022).”

What many investors do not realise is that depreciation schedules should evolve as the property changes.

New carpets, upgraded appliances, renovations or structural improvements may all affect the deductions available to you. If those changes are not reflected in an updated schedule, you may be leaving legitimate deductions on the table.

When an Update Might Be Needed

A simple rule of thumb is to review your depreciation position whenever meaningful changes occur at the property.

Have you replaced the flooring? Installed a new air conditioner? Renovated the kitchen or bathroom? Even smaller upgrades can influence how deductions are calculated.

If you have owned the property for several years, or if you never obtained a depreciation schedule in the first place, it may be worth speaking with a qualified quantity surveyor or tax adviser to ensure everything is captured correctly.

It is one of those behind-the-scenes steps that can quietly strengthen your investment over time.

Why Insurance Reviews Matter Just As Much

Insurance often sits in the same category as depreciation. It is arranged once and then renewed automatically year after year.

The challenge is that your circumstances rarely stay the same. Your property may have been improved. Rental income may have increased. Or the risks you face as a landlord may have changed.

Insurance experts consistently encourage landlords to review their policies rather than assuming last year’s cover is still the right fit.

As Carolyn Parella, Head of Terri Scheer Customer Service, explains, “it’s important to understand what risks you face, how you would manage financially if they happened, and compare policies to see where you will be covered for loss you would not be able to afford without insurance (Scheer, 2025).”

For property investors, those risks can include tenant damage, legal liability and the potential loss of rental income while repairs are carried out.

Looking Beyond the Premium Price

When reviewing insurance, many owners focus on finding the lowest premium. While cost is always part of the conversation, the level of protection matters far more.

A cheaper policy may carry higher excess amounts or exclusions that only become clear when you need to make a claim.

Insurance specialists often caution landlords against focusing purely on price. Parella further noted, “it’s important that people are shopping for value, not price (Scheer, 2025).”

Understanding the product disclosure statement, checking excess levels and confirming that key risks such as tenant damage and rent loss are covered can make a significant difference when something unexpected occurs.

A Simple Check That Protects the Bigger Picture

Owning an investment property is a long-term journey. The investors who tend to do well are the ones who periodically pause to review the small details that protect the bigger picture.

Checking your investment property depreciation and insurance each year is a simple but powerful way to ensure your deductions remain accurate and your asset remains properly protected.

If you would like help reviewing how your investment property is performing, or ensuring the right systems are in place around management, compliance and protection, I am always happy to help. Contact me today so we can get started.

Disclaimer: The information in this blog is general in nature and is intended for educational purposes only. It does not constitute financial, taxation or insurance advice. Property owners should seek guidance from a qualified tax adviser, quantity surveyor or insurance professional before making decisions relating to depreciation or insurance coverage.