Insurance Versus Court
Part of our practice is to ensure landlord insurance cover is in place at the beginning of each tenancy. At LISTED Estate Agents, we have strict policies in place for: areas of investment management such as rent and invoice arrears; property inspections are done every 17 weeks, in house; up to date market research to proactively manage our tenancies. However, risk management is a crucial part of owning an investment property. With all the best driving skill and experience in the world and the fittest, healthiest individual, there is no guarantee that you won’t have to claim on your car or health insurance.
Most specialist landlord insurance policies should cost no more than $300 per year and we strongly recommend that our owners are covered (at the very least) for loss of rent, accidental and malicious damage through such policies. Generic landlord insurance, for example, with a bank or one of the large providers, mentioning no names but the red and white catchy theme tune insurers, have very limited cover for the particular scenarios that may occur with investment properties. It is crucial when researching landlord insurance that the owner compares the quality of policies and what is covered.
Sometimes, in the event of having to recover monies from a tenant, for example, to cover rent arrears, the route is either to claim on insurance or to do this through the courts. We would recommend the latter. In our experience, when a magistrate rules in favour of the owner, but the bond does not cover all the rent and there are other costs due to the owner, it is highly unlikely, that the tenant will pay the remainder of the debt.
With the owners’ authorisation, a call from us to the insurance provider and submission of the necessary records kept by us, payment can be made quickly, sometimes in only two weeks.
Next time I will share with you two case studies where an owner has chosen to 1. Claim through the courts and 2. Claim through insurance.
Tune in to next time as we have more case studies to demonstrate the importance of proper insurance you would like to know more about safeguarding your investment property, please contact me on (08) 9307 0999.
Telephone dept of commerce – to ask for advice and how to enforce the bond disposal.
EBM interview on BOMB BOMB video.
Call owners who don’t have EBM and ask them if they would like EBM to contact them to compare what they’ve got. 70% extra cost.