The reason we take out special landlord’s insurance is to give us peace of mind to know we are covered should accidents or another unexpected event occur.

Some landlords are surprised when a claim is denied; all too often though these claims are denied for very valid reasons. For instance, you cannot claim for general wear and tear on a property or for routine maintenance and repairs. Nor can you claim for cleaning the property when a tenant leaves – this is why they pay bond money.

Here are some points to consider to help you make a valid claim:

Get the right policy in place

Having the right policy in place at the start ensures you will have the cover appropriate for your property. There are different insurance policies for different properties and letting situations. For instance, a Short-Term policy will not cover for matters arising from a breach of the lease.

If you’ve taken out a policy that only covers contents and tenant related matters, damage to the building will not be covered.

Always speak to the insurance advisor and fully explain your rental property situation, and always read the PDS (Product Disclosure Statement) so you know exactly what events are and aren’t included in a policy, and what excess you are expected to pay.

Pay your premiums

Insurance policies cover you for a set period of time, usually for 12 months. So, it stands to reason, if the event occurred outside of the dates of your policy, for instance, damage to the property, it cannot be claimed for.

Your insurance company usually sends you a reminder when the policy is due for renewal. We also send reminders to our landlords, to ensure their property is always covered, and they are not caught out by an expired policy.

Meet your obligations

As a landlord, you do have obligations to keep when taking out an insurance policy, and if you don’t meet these obligations, it is within the insurers right to not pay for your claim.

Key obligations include:

• Disclosing change of circumstances: This may include major renovations and the property being empty for an extended period of time, or an event which may result in a liability claim.
• Keep your property maintained and safe: If damage occurs as a result of bad maintenance, such as failure to fix faulty plumbing and the flooring being ruined later down the track, the insurance company is unlikely to pay out.
• Take steps to prevent further loss after an event: Many insurance policies will have a clause that requires the policyholder to act (within reason) to prevent further loss. An example of this may be if the roof is damaged in a storm, a temporary cover should be in place to prevent water from entering and causing more damage.

Provide evidence to support your claim

Insurers do require evidence to support the claim. This could be in the form of photos and videos of the damage, and where an emergency repair has been needed, a report together with a tax invoice/receipt of the work carried out.

If you are claiming for loss of rent, many insurance companies will require a copy of the lease, the rent ledger, and all correspondence with the tenant.

Where there has been malicious damage or theft, you may also need to send in a police report.

For property investors, we strongly recommend you use a specialist landlord insurance provider; there are risk factors you will need to consider, such as non-payment of rent and indemnity, and general insurance providers offering cover for landlords may not be sufficiently covered by some. Don’t be guided on price alone – it’s worth paying a few more dollars for the peace of mind.

Our team is always keen to share its knowledge and help you get the best out of your property. We’re always here for an informal chat to answer questions, so give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office.

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