4 Cases When Landlord Insurance Proved to be a Wise Investment

If you are fortunate, you may never make a claim against your insurance. However, accidents and unexpected disasters can, and often do, occur. When you are involved in the unpredictable, it is important to have protection for your investment. Here are four real situations when landlord insurance stepped in to save clients thousands of dollars…

Impact damage

A car lost control and travelled through the fence and lounge/kitchen walls of a client. Renters had to vacate immediately as the property was deemed uninhabitable. Repairs took place, however there were multiple work variations and market challenges that delayed progress. Landlord Insurance covered both the damage and loss of rent throughout the repairs.

Flood damage

During a severe weather event in Queensland the Brisbane River and connecting Oxley Creek burst their banks and flooded surrounding land. The property was completely submerged, with the water height reaching 3 – 3.5 metres above ground level. At the time of an inspection, all ceilings had collapsed due to the inundation throughout. Access to the property was denied. This claim for damage and loss of rent reached into the hundreds of thousands of dollars.

Pet damage

A renter signed a lease agreement without noting a dog on the lease. A routine inspection was conducted, but no signs of a dog living in the property were found. However, a few months later, neighbours complained of an odour originating from the unit – that is when the property manager discovered the dog. The renter, after being confronted, decided to vacate the property leaving it in a poor and contaminated condition. Even after the unit had been cleaned and acid washed, the odour from the unit remained unbearable. The dog urine had penetrated the fixtures, so many had to be replaced. This dramatic case of malicious damage required the services of a restorer and a hygienist, which were covered by the insurance.

Loss of rent + renter's damage

The renter fell into arrears and the lease agreement was terminated due to non-payment of rent. The issue went to a tribunal, and the renter was eventually evicted, leaving the property in an unruly condition with rubbish and contents scattered throughout. There was also damage to pool equipment and walls throughout the property. The difference between having and not having landlord insurance represented over $10,000 in this case.

The bottom line

As a property owner, you should consider safeguarding your assets and securing the income it generates. A specialist landlord insurance policy can help.

This article is based on information provided by the team at EBM RentCover, one of LongView’s accredited providers. EBM RentCover is one of Australia’s leading landlord insurance providers, protecting approximately 165,000 rental properties across Australia. While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation may impact the accuracy of this article. You may contact EBM on 1800 661 662 or visit https://www.rentcover.com.au/insurance/landlord if you have any questions.