Property Risk Management via adequate Insurance coverage
I’m getting worried about getting more property. I have Landlords Insurance and building insurance. But what if my property burns down accidentally or deliberately or by act of nature etc…
1. I expect the building Insurance may cover the building
2. Would Landlords Insurance cover the loss of rent ? while reconstruction takes place ? I mean it could take 6 months to clear the site and rebuild and for the building insurance claim to be processed, if not even longer if there are legal complications.
If not, then what other insurance if any can I get that would cover my rental payments in the event of such a disaster ? This looks to be a major risk hole if it is not covered and you have many IPs highly geared and all negative cash flow.
Thanks
hwd007,
I just received a quote from NRMA for building, contents and LANDLORD insurance all rolled into one, and they will cover for accidental damage to property, and, loss of income (rent) for up to 12 months if the property is accidentally destroyed ie. burns down. I think the key word is accidental they wont cover malicious damage.
BC
So you are covered for rent for 52 weeks in the event of ;
1. Accidental Fire ?
2. Deleberate Fire ? NO
3. Act of Nature resulting in Fire ?
So you are covered for rent for 52 weeks in the event of ;1. Accidental Fire ?
2. Deleberate Fire ? NO
3. Act of Nature resulting in Fire ?
1. yes
2. no
3. yesI will quote from the policy, abbreviated where neccessary,
“Fire.
We cover loss or damage caused by fire.
But not if,
* fire started intenionally, by person living in property or have entered with your consent or tenants consent.* bushfire for the first 48 hours after the start of this policy,
however, we will cover within 48 hours if immediately before you took out this policy,– risk passed to you as a purchaser
– you signed a lease contract
– your policy commenced immediately after anotherpolicy expired without a break.”So if this fits what your after, give NRMA a call to confirm for your own due dilligence.
BC
I have checked my AON policy, and I cannot see that it discusses the issue of covering rent for the period of rebuilding the property in the event of damage from fire or storm etc…
It only appears to make reference to coverage from willfull or accidental damage. This is a concern I do need to clarify with the company, and also with WESTPAC with their policy.
hwd007, I have to apoligize for giving you inaccurate info, I attended the NRMA office to finalise insurance today, only to be told that NRMA does not offer such cover and the customer services officer will be told that she erred in including in my quote.
Sorry for any inconvience caused.
BC
hwd007, I have to apoligize for giving you inaccurate info, I attended the NRMA office to finalise insurance today, only to be told that NRMA does not offer such cover and the customer services officer will be told that she erred in including in my quote.
Sorry for any inconvience caused.
BC
BC these are the things that concern me. I’m concerned that we may be left with coverage holes in our Landlords Insurance policies, that many of us may not be aware of.
Another example; I have emailed AON Insurance about this and await their response. I presume its plant & equip but not sure if its covered by Landlords Insurance.
Are dishwashers, clothes dryers washing machines, air conditioners etc..
when supplied by the landlord and included as part of a new property purchase, viewed as contents or part of the building ? Thus in the event of fire or damage, would they be covered by Landlords insurance ? Or would you need to take out a separate contents policy to cover these things.cheers.
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