Why Landlord Insurance Is Important?

Real Landlord Insurance is a unique, boutique Insurance Brokerage in New Zealand that specialises solely in Landlord Insurance. Their products are only available to landlords who entrust the care of their investment properties to a Real Approved Property Management Company such as Barfoot & Thompson Property Management. 

Why Landlord Insurance is Important?

Landlord Insurance covers you for tenant-related losses. Things like loss of rent due to a tenant breaking their lease or being evicted, or damage caused to your contents by tenants, like drink spills on carpets. Other insurance may not cover these events, and very often, the bond won’t be enough to cover the associated costs.

Who needs landlord insurance?

Everyone who owns a Rental Property!

Here’s  some classic examples of claims paid out to Landlords by Real Insurance: 

Example 1

Sharyn T found her Rental Property had traces of Methamphetamine in it, after a tenant had vacated. The home was deemed uninhabitable. Sharyn was devastated – she had a mortgage to pay!

How did the Landlord Preferred Policy help? Rent Claim Payments were paid to Sharyn on a monthly basis until the home was deemed habitable again. The claim included testing, Cleaning, New Carpet, Drapes, Wallpaper, and final testing of the property to ensure the home was safe again. Sharyn received a total claim payment of $12,095.17. An excess of $500 was applied to this claim.

Example 2

Elise P’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 tenants as per policy conditions. Elise’s landlord received a total claim payment of $9,650.00. Excess was one week’s rent.

Example 3

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.Carolyn was supported  throughout the claim process and provided settlement of the claim for a total of $7,284.03 and an excess of $500 applied.

Interested?

Have a look at the various cover options and contact your property manager for a quote.