Importance of Ensuring Your Property is Covered by Landlord Insurance
The team at The Property Exchange are always attending relevant training sessions to keep up to date with market trends and to ensure we are offering you the best service in the business! At a recent REIWA training session about appearing in court, the property management team reported that many other agencies also noted that court attendance is increasing. There were a number of key reasons why property managers felt this has been occurring, including:
– Loss of Employment
– Relationship Breakdown
– Mental Heath
– Drug and Alcohol Issues
Unfortunately these areas are affecting all facets of life today, including the Real Estate industry.
Your Property Management team at TPE are educated and experienced in the preparation for court and how to handle a hearing.
With this in mind we would like to remind you of the importance of ensuring your property is covered by a good Landlord Insurance Policy.
$250 per week property. Tenant moves in pays 2 weeks rent and does not pay rent again. After the appropriate notices are issued and the tenant has failed to return the property or pay the rent, court application is made and hearing is finally set down.
A recent court hearing had a tenant at approximately $3000.00 in arrears. Court and Bailiff costs plus change of locks (as tenant did not hand over possession after order was issued) were $1075.00. Repairs and cleaning following the final inspection $700.00.
Total damages $4775.00
After the bond of $1000.00 was disbursed the total loss to the owner was $3775.00.
This owner did not have insurance.
A good landlord insurance policy would have likely covered approximately $3000.00 upon claim.
For the small, tax deductible, annual cost of landlord insurance, we highly recommend you protect your investment property by arranging a good landlord insurance policy. Not only does it give you peace of mind, but if you need to make a claim, it really does pay for itself.
EBM Insurance Brokers
Annual premium is currently $275.00. You can view details of their policy on their website www.rentcover.com.au or please feel free to contact me if you have questions or would like a policy set up on your behalf.
***Disclaimer: It is also important to understand what your landlord insurance policy will and won’t cover. Please consult with your landlord insurer so that you are fully aware of the extent of your cover and also any excesses that may be applicable in the event of a claim.