Landlords Insurance

Are You Really Covered?

We are not insurance brokers or pretend to be, but unfortunately we do have to deal with insurance companies on an all too regular basis. The perfect tenant can suddenly change, as life events such as job loss, illness or a separation can affect them. This can lead them to default on the rent, abandon the property and sadly in some cases, maliciously damage it.

From our dealings with the different insurance companies we have unfortunately seen a lot of unpleasant situations.
Recently one major insurance company which many of us have dealt with at some stage or another, refused to cover most of the damage to the property; it saw the damage as ‘wear and tear’. But worse still, the company also declined to cover the loss of rent as the tenant was on a periodic lease (a lease that is still binding but outside of its fixed term period). Given that most landlords want to keep good tenants, this type of lease makes up the vast majority of current rental situations.

However, only weeks earlier another client in a similar situation but with a different insurance company, had slightly
damaged property fully repainted, recarpeted and the loss of rent repaid. Plus they experienced very little hassle when making the claim to boot.

“I urge you to carefully look at your own policy, read the policy Disclosure Statement and if you don’t understand it, or you are unsure, contact the insurance company direct to check what exactly it is you’re
covered for and how it makes its decisions,” says Craig Andriessen, Director, Newcastle Property Management. “We’re also really keen to share our experiences of different insurance companies, so, please call us if you’d like to know what it’s like dealing with a company on a practical level.”