Landlords should have full insurance for their rental property, not only to protect against the important events including earthquake, fire and flood, but also for the additional landlord risks including loss of rents, tenant damage, landlord contents and even meth contamination.
Because policies vary from one insurance provider to another, it is important to check what cover is included as standard in a policy, and what optional cover can also be added for an increased premium.
The RTA Amendments Act 2019 has created the requirement for landlords to be fully transparent regarding their existing insurance and should be a reminder for all landlords to ensure they have suitable cover in place.
Many investors believe they have adequate cover under their current policy only to find at the point of making a claim that’s its not what they expected.
Every landlord insurance policy will likely contain exclusive requirements and it’s vital you are aware of what these are e.g., in a damage compensation claim you may be required to show evidence of regular inspections you have conducted.
It’s important to ensure you have the right cover against all possible outcomes (including loss of rent, damage, abandonment etc) and often a simple extension to your existing policy may be all that is required.
Real Landlord Insurance NZ
We understand the importance of continuity of rental income and strongly recommend all landlords ensure that they have sufficient landlord protection insurance.
The Rent Shop Limited has an excellent long-term relationship with Real Landlord Insurance NZ (RLINZ) who specialize in insurance for landlords and their properties. Feel free to visit their website at www.rlinz.co.nz for more information about the specialist cover they offer or contact your Property Manager for more information.
RLINZ have put together a couple of examples to demonstrate the benefit of their policies.
Example 1
Elise's Landlord would have been forced to sell their rental property if they did not have the Landlord Preferred Policy.
The tenant failed to make rent payments – after the Property Manager went through the due process and received a possession order, the tenant appealed the decision twice with the tenancy tribunal, delaying the enforcement of the order. Unfortunately, the Landlords loss increased throughout this time whilst the Justice System impeded the removal of the tenant.
As soon as possible, the enforcement of possession took place. Loss of rent is paid to the maximum claimable under defaulting tenant as per policy conditions.
Elise’s Landlord received a total claim payment of $9,650.00. Excess was one week’s rent.
Example 2
Carolyn had the ‘perfect tenant’ – her tenant had been in her home for 3 years. All inspection reports were glowing, the tenant was very clean, neat and tidy, and each inspection showed full photos to prove this. The grounds were immaculate, and the rent was paid on time. What could possibly go wrong?
The tenant lost his job!
The tenant was unable to make regular payments and Carolyn requested that the tenant vacate within 90 days. In the final weeks the tenant lost it! This was his home! The tenant put holes in walls, smashed lights and blinds, and even ripped the alarm system from the wall – cutting all wires.
Real Landlord provided support to Carolyn throughout the claim process and provided settlement of the claim for a total of $7,284.03 and an excess of $500 applied.
When you engage with The Rent Shop and our team of Property Managers you can choose to select one of the Real Landlord Insurance Policies that are only available to accredited property management companies. RLINZ policies also tend to have lower excess costs when compared to other generic landlord Insurance policies.
By engaging The Rent Shop, we have access to the best possible cover for any adverse situations. It’s just one of the many benefits involved with having your property professionally managed.
