Arthur investigates the top three landlord insurance claims that come into play the most.
Assisting landlords with their claims for over 20 years, Terri Scheer, an Australian leading landlord insurance specialist, helped gather some of the most common claims that landlords should be aware of.
Loss of rental income:
Accounting for more than a third of all claims, rent default is the most common claim for landlords.
Landlord insurance can cover you for a range of rent loss circumstances, such as when the tenant’s lease has been terminated by court order following failure to pay rent, tenant hardship or sole tenant death.
It’s important to be aware that the policy may not cover all incurred losses, and that a specialist landlord insurance policy can help protect against financial loss.
Malicious and accidental damage:
Large repair bills and significant replacement costs caused by damage to the property can put significant pressure on landlords. With this being the second most common landlord insurance claim, malicious damage to your property, can be caused by either the tenant or their family or friends. Damage is often motivated by malice, vindictiveness or spite.
A tailored landlord policy can be invaluable in the event of such events, as a standard building and contents insurance policy may not cover landlords for tenant related damage.
Damage caused by water to the contents of a rental property is also a common insurance claim. In some cases, this could be caused by the tenant’s faulty appliances and fittings or by problems relating to the property.
It is important to have landlord insurance to cover as many contingencies as possible as many standard building and contents policies exclude water damage due to accidents caused by the tenant, or limit cover to the contents, not the building. As a property owner, it is also advisable to check the extent to which you are covered for storm, flood and general water damage to your property, and to understand any exclusions of cover.
Arthur Online brings the many together and puts you at the centre with an unprecedented level of control to prevent any issues that could lead to these claims.
Upon raised issues, our online platforms and suite of apps allow your tenants to immediately get in contact with you. You can then assign contractors and receive/accept quotes for the jobs; speeding up the process and minimising the damage to your property.
On the other hand, with document management in Arthur, you can also store all legal/non legal documents in one place, and share them selectively.