We have all seen the insurance advert on TV with the curtains burning, the big gash in the wall and the red wine spill, I am certain we have all had accidents like this in our homes at some point and it has caused us some stress. Unfortunately, all insurance policies are very different and you will not know until you try to make a claim.
Like with all insurance claims, we hope we never have to deal with a claim but getting good advice is the first port to call, providing a detailed report with dated photos and keeping to the facts at all times.
The unimaginable will at some stage happen to some investment properties, floods, bushfires, electrical fires, unattended candles, lithium batteries exploding, kids playing with lighters, and kitchen fires are probably the most common we see.
The Benefits of Landlord Insurance
There is no doubt that landlord Insurance is a safety net if the property is consumed by fire or flood. Australia is infamous for flash floods and bushfires that ravage our country each and every year. As little as a year ago, unprecedented floods occurred and many homes were left uninhabitable including rental properties. Having the correct Landlord Protections Insurance meant some owners were fortunate enough to have coverage for up to 52 weeks of rent paid to them.
The benefit of having an insurance policy that pays for rent while you maneuver around the partial or complete destruction of your property, cannot be overstated, particularly while you continue to have a mortgage to pay, insurance, rates, and the like. Like anything though, it is VITAL to check the inclusions on your policy to make sure you are covered in the worst possible scenario as some will offer certain cover and benefits that others do not.
Remember, most people would not drive their car without having insurance so why is insurance for one of your most valuable assets so frequently overlooked?
Renter Damage: Accident, Negligent or Malicious
As far as renter damage is concerned, it’s up to each company that issues the policy as to what is covered. This is why it is so important to carefully look at your inclusions and exclusions and take out a policy that suits your needs. Be sure to look at the excesses charged and if the policy looks at each incident as a stand-alone item or the claim as a whole.
Some companies will use the bond as an excess, some will have an excess on each part of the claim, and you need to do your homework.
If you were to need to make a claim for renter damage, negligence, or malicious - your ingoing condition report and regular routine inspections with a dated detailed report including dated photographs can be your best friend if such an incident occurs. These will form an ongoing record of the condition of the property and its care and maintenance.
The bond will only go so far and good management by a professional Property manager can save you time, money, and your sanity.
