How to Step Up and Avoid Common Insurance Claims
By Kellie Andriessen – NSW REI Property Manager of the Year 2024
Landlord insurance is an absolute must for every investor. It’s your safety net when the unexpected happens, whether that’s storm damage, malicious tenants, or rental arrears. But in my experience, insurance should never be your only strategy. The best way to protect your property—and your returns—is to step up with proactive management that reduces the need for claims in the first place.
I’ve been managing properties for decades, and as NSW REI Property Manager of the Year 2024, I’ve seen the difference it makes when landlords and property managers work together to stay one step ahead.
Be Prepared for the Unexpected
One of the biggest lessons I’ve learned is that prevention beats cure every time. Storms and water damage are two of the most common causes of claims. By sticking to a proper maintenance schedule, we can reduce both the risk and the cost of these events.
For example, in leafy suburbs, I recommend landlords schedule gutter cleaning at least once or twice a year. Blocked gutters and downpipes are one of the simplest—and most preventable—causes of internal flooding. Similarly, I always caution landlords not to rely on quick fixes for leaking roofs. A temporary silicone patch may not only fail but could also void your insurance cover.
Smoke alarm compliance and pest inspections are standard practice, but I encourage landlords to go further. Termite activity can devastate a home in less than a year, even with regular checks, so it’s worth reviewing landscaping and tree placement to prevent hidden entry points.
And don’t overlook plumbing. Burst flexi hoses are now one of the leading causes of water damage. I recommend they be replaced every 10 years regardless of their condition. I’ve seen firsthand how a $50 part can cause hundreds of thousands of dollars’ worth of damage if neglected.
Finding the Right Tenants
Insurance will often cover malicious damage, but the stress and downtime associated with these claims can be avoided if we’re careful about tenant selection and ongoing monitoring.
With recent rental reforms making it easier for tenants to keep pets, landlords face a greater risk of accidental or malicious damage. This makes thorough inspections more important than ever. At Newcastle Property Management, we provide detailed, photo-based inspection reports, giving landlords a clear timeline and evidence if a claim ever needs to be lodged.
The distinction between “wear and tear” and “malicious damage” is often a sticking point with insurers. Scratches on floorboards or holes in walls might look minor but proving when and how they occurred can make or break a claim. With quality reporting, that burden is far easier to meet.
Regular inspections also give landlords oversight of how the property is being cared for, while allowing us to address small problems before they escalate.
Take Action Early
One piece of advice I always give landlords is: don’t wait until the end of a tenancy to address issues. If a tenant makes changes to the property—say, removing fittings or modifying spaces—it’s better to step in early and resolve it than to let the problem grow.
Meeting tenants in person where possible, rather than only holding open homes, is another strategy I find invaluable. It gives me a better sense of who will be living in the property and whether they’ll respect it. While more time-consuming, this extra step often pays dividends down the track.
With pets now a reality for many rentals, I also recommend practical adjustments such as opting for floorboards instead of carpets and ensuring good ventilation to avoid lingering odours.
And finally, I strongly encourage landlords to use specialist landlord insurance rather than relying on generic providers. Not all policies are equal, and some do not cover accidental, malicious, or pet damage. Too many times I’ve seen owners caught out because their policy didn’t cover what they thought it did.
My Advice to Landlords
From what I’ve seen, the landlords who get the best outcomes are those who combine proactive management with strong insurance. They don’t simply wait for problems—they prevent them. They value quality inspections, they act early, and they choose their tenants and their insurers carefully.
Here are my top takeaways:
- Schedule regular maintenance—especially gutters, smoke alarms, pest checks, and flexi hoses.
- Document thoroughly with photographic inspections and detailed reports.
- Address issues immediately, not at the end of a lease.
- Spend time with tenants to better understand who will live in your property.
- Use specialist insurance that covers malicious, accidental, and pet damage.
As a property manager, my role is about much more than rent collection. It’s about safeguarding investments and supporting landlords so they can feel confident their property is in the best hands. By stepping up in these key areas, landlords can reduce insurance claims, protect their properties, and ensure their investments remain profitable.
For more information please feel free to give me a call 49569777.