One of the biggest stresses involved with renting a property is to understand the type of cover you need when you are a property owner and the potential claims you may be exposed to.
Property Damage
Choosing the right level of cover for your investment property is a difficult decision and depends on the property you are leasing as well as your priorities as a property owner. Before deciding on a cover, it is advised to make sure that your home is in good condition and is tenantable.
’By far one of the most common insurance claims made by property owners are severe weather events including properties damaged due to storms,’ as George Pipertzis, Assistant Director Underwriting at DSH Insurance, explains.
Second most common insurance claim is that of water damage, that can equally be devastating. The type of damage caused by a burst pipe or flexi hose can severely damage your property which is why it is important to have regular check-ups that include a full system check by a registered plumber.
‘Under sink flexi hoses have a tendency to burst if they are not replaced regularly. This way you are onto a problem before it gets out of control,’ says George.
The DSH Insurance Home Building policy also provides property owners who are renting their properties to tenants with cover for fixtures and fitting for these severe weather events and offer up to $10,000 or 10% of the sum insured (limits may apply). Fixtures and fitting include items that are permanently fixed to the home including internal blinds, curtains and carpets.
Loss of Rent
Loss of rent applies if the home is damaged by an event that makes the home unfit to live in by your tenant and at the time of the loss or damage you are leasing out the home (for which DSH Insurance agrees to pay a claim).
‘DSH Insurance will pay you for loss of rent for the reasonable time it takes to repair or rebuild the home, or for up to 12 months from the date of the loss or damage, whichever is less, helping our property owner through the rebuilding phase.’ says George.
Are there any other insurance factors to consider as a property owner?
It’s important to go through your Product Disclosure Statement (PDS) to understand if you are covered for tenant rent default and malicious damage caused by the tenant. Property owners are constantly faced with situations where tenants cause malicious damage to their property or tenants fail to maintain the property, leaving owners to foot the bills. In those unexpected situations, it is advised to get a cover for malicious damage caused by the tenant but please note – general maintenance/living standard issues caused by tenants might not be part of the overall cover.
‘DSH Insurance’s home building cover does not provide cover for malicious damage by tenants or rent default, however DSH Insurance have organised a product with our partner QBE Insurance* and you can find more information on our Residential Landlords page,’ says George.
Our team is here to assist and answer your questions about the Property Owner Cover so send us an email at dsh@dva.gov.au
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*Subject to QBE’s underwriting guidelines
Disclaimer: This article is based on general insurance advice that only applies to the DSH Insurance building Product Disclosure Statement (PDS) (PDF 732 KB). Each PDS is different, based on an individual’s unique needs, so please refer to your PDS before starting any renovations.