The uncertainty of COVID-19 with respect to tenancy laws and the moratorium on evictions plunged the insurance industry into a panic for a couple of months.
Because the rules had suddenly changed, Landlords were exposed to higher risks of tenants defaulting on their rent, and insurance companies re-wrote policy on the run.
One unfortunate result was that landlords could not take out new policies with a rent default component for several months.
The good news is that because the moratorium on evictions has ended in Queensland, several insurance companies have now lifted the embargo and are offering the full range of Landlord Insurance including rent default.
This may be a good opportunity to re-assess your Landlord Insurance cover.
Often, policies are taken out without much thought because of the common misconception that all Landlord Insurance policies are about the same. In reality, the difference between a good policy and a bad one could be tens of thousands of dollars when it comes to making a claim, and you must read the PDS to find out what you are covered for.
Even if the policy shows adequate cover, what they don’t tell you is how many hoops you have to jump through and how long you have to wait for a claim to be paid. This is not only frustrating, but also financially risky because the cash flow from your rental income may be affected, increasing liability for bank fees if your mortgage payments suffer.
So what is a good policy?
As specialised managing agents, we have had experience dealing with claims from dozens of insurance companies and we can guide you towards policies which specialise in Landlord Protection. It is very distressing when a client tries to make a claim on their insurance and finds out too late that it was not a good policy. This is when they typically change insurance companies for ones that provide better cover.
Don’t let that be you – read your insurance PDS and contact your property manager if you have any questions.
For more information on what to look out for in a policy, click on the link to our Fact Sheet.