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Published April 2019
Owning a rental property can be a solid investment, but what may prove just as valuable is landlord insurance.
Just like the home you live in, an investment property can be affected by natural disasters such as storms, floods and fires, or by accidental damage or theft. Having tenants means you also have the risk of loss of rent. This is why it makes sense to take out landlord insurance to protect your property and the income you receive from your tenants.
Making a landlord insurance claim for the first time can be daunting especially in the event of a major loss such as fire, storm or flood, or if you’re facing loss of rental income. To help navigate through the claim lodgement process and to remove some of the stress, the following tips should help you with your claim.
Always confirm the next steps of the claims process with the insurance provider and the expected time of completion of those steps. This will help you to understand the timeframe involved with settling your claim, and hold the insurance company to account regarding the completion of assessment, the approval of your claim, and the commencement of repairs or replacement of items.
The minimum time and standard which insurance providers must meet when handling your claim are both set out in the Insurance Code of Practice.
If your insurer has accepted your claim, in consultation with you, they will decide whether to repair, rebuild, replace or pay you the cost of repairs or rebuilding either your property or lost or damaged contents.
In some situations, your insurance provider may not cover or pay your claim. If this happens to you, your insurer is required to tell you why. You can ask for this decision to be reviewed through the insurance provider’s own internal dispute-resolution body or by going directly through to the Australian Financial Complaints Authority (AFCA) for free independent resolution of your complaint.
While policies vary, generally landlord insurance covers:
Landlord insurance can also cover you if your tenants injure themselves while on your property. Always refer to the product disclosure statement to fully understand what is covered.
Landlord insurance generally doesn’t cover the wear and tear of your property or costs for regular maintenance issues, such as a plumber fixing a leaking tap.
It doesn’t cover you for any period your property is without a tenant, or for any repairs that a tenant may carry out themselves. Cover is also unlikely to extend to items such as trees, shrubs, or anything growing in the ground.
It’s important to have a tenancy agreement in place so you and your tenant fully understand what is and isn’t covered.
It’s important to know what is and isn’t covered by a landlord insurance policy before making the decision to purchase, so make sure you read your insurer’s product disclosure statement and ask the insurance provider questions to know exactly what you are covered for, and what you’re not covered for.
Comparing landlord insurance from several providers also helps in making the right decision. Some insurance providers also provide flexibility in selecting or deselecting specific benefits and features as well as choosing a suitable excess to meet your specific needs.
This information is current as at date of publication and is subject to change.
ANZ Landlord Insurance is issued by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239 545) (QBE) and distributed by ANZ under its own license. ANZ recommends that you read the ANZ Financial Services Guide (PDF 179kB), ANZ Landlord Insurance Target Market Determination (PDF 208kB) and ANZ Landlord Insurance Product Disclosure Statement and Policy Document (PDF 709kB) (available online or by calling 13 16 14) before deciding whether to acquire, or to continue to hold, this product.
Although Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 AFSL 234527 distributes these products, ANZ does not guarantee or stand behind the issuers or their products.
This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. You should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs.