Heavy Rains & Insurance Claims
We can never stress enough the importance of having adequate insurance for your investment property. Like any insurance, you may never need it, but you will have peace of mind when there are so many unknown factors that can occur. With the recent storms and heavy rains, it is a timely reminder of the importance of not just your landlord cover, but also your building insurance cover.
Something we recommend is having both landlord and building insurance under the one provider. This way when there is a major event like flooding or a collapsed ceiling, it can be much more efficient for the policyholder to be dealing with one company and can make the entire process more seamless. As an example, there may be a separate claim for structural damage and repairs whilst also needing to claim for loss of rent (as you are unable to charge tenants rent for an uninhabitable property).
We also make it clear to tenants that they need to obtain their own contents insurance when they move to their new home, as their contents do not under the landlord’s insurance. Should you be leasing your property out with any furnishings, you will need to include this contents on your landlord insurance policy, which does attract a slightly higher costing.
Many other scenarios can happen when it comes to making a claim, and not always will they be covered no matter how good your policy is. This is where having a great property manager assisting you in these stressful times can make the world of difference. For example allocating the tenants bond held towards items not covered under your insurance policy like cleaning or gardening and then using the claim to cover things that are, like unpaid rent.
Prevention is always the best policy – Our friends at EBM Insurance have provided some information about the ‘Five common issues that lead to claims denials’. Read more here.