Apartment owners: Did you know your body corp does not cover you for public liability inside the four walls of your property?
Many owners have never had this explained to them. So what danger are you in as a landlord? In case of a slip and fall claim by a tenant. In case of an accident in the bath or shower. Plus many more risks. Someone has to pay damages, and hopefully that person is your insurer.
Did you know a policy for Landlord Protection Insurance can cover you not only for the all important Public Liability but may also cover you for:
• Loss of Rent claims caused by storm or fire (we recently had a home in Paddington with the roof blown off, but with a policy to cover your loss of rent it doesn’t cost the landlord anything)
• Carpet damages and clean ups caused by air conditioning leaks or washing machine blow outs
• Loss of Rent claims caused by absconding tenants or rent arrears or properties left in a mess while you/we clean up
• Damages caused by tenants Maliciously, Accidentally or Purposefully
Imagine this scenario… your agent selects a good tenant with references and all the bells and whistles. But three months later, they break up with their spouse and get fired from their job!
The rent stops, of course they get no phone call. The tenants walk away because it’s all too hard!
At 8 days we issue a Notice to Remedy Breach for rent arrears, 7 days later the tenants haven’t paid, the next day we issue a Notice to Leave and 7 days later the tenants haven’t handed back the keys. We put in the paperwork to go to court for a Warrant for Possession, then next week attend. We get the Warrant and the Police come the next week.
The agent is finally able to change the locks and have possession of the property back. They find they have 6 hours of cleaning, carpet cleaning and a bill from the new set of locks and keys.
We’re already more than 5 weeks without rent! The bond money (usually a maximum of 28 days worth) has been spent in a heartbeat yet the agent has done everything the law allows. So who pays…?
You or your insurer…. your call.
What do you do if you’re a tenant worried about some damage you’ve done to your rental home. You’re pretty confident you won’t get any bond back. Do you, A: give the agent a call to discuss? B: attempt to repair the place? or C: burn the house to the ground?!
