Between the potential for property damage from any number of accidents, a long list of valuable contents and the constant worry of securing incoming rent, landlords have enough on their plate. Landlord insurance could help ease the burden by offering cover for loss of rent, theft or attempted theft and a range of benefits to take some of the worry away.
NRMA provides cover for rental default of up to $5,000 and loss of rent for a period of 12 months if your property is deemed unlivable. But what events will it insure against? Is everything on your property covered? What is meant by “contents”? Are there any exclusions?
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What cover options does NRMA have?
- Building Cover. Protect your property with Building Cover. Cover extends to pipes, cables, ducting, wires, switches, meters, fixed appliances, carports, patios, paved paths, driveways and other permanent fixtures (pools, spas, etc).
- Contents Cover. Take care of everything not nailed down with Contents Cover. As well as all the expected items such as entertainment equipment and kitchen appliances, your carpets, curtains, blinds, furniture, furnishings, non-permanent light fittings, removable domestic appliances, utensils, swimming pools and their accessories are all included too.
- Home & Contents Cover. Take care of the rafters and everything underneath with Home & Contents Cover, combining both policies for your property and its contents, as well as legal liability of up to $20 million. You can also select to remove certain insured events to lower your premium, though you will not be protected against those events, should they happen.
How does each cover type compare?
|Burnout or fusion of electric motors|
|Flood and rainwater run-off|
|Riots or civil commotion|
|Storm and storm surge|
|Theft or attempted theft by tenant, guest or someone else|
|Vandalism or malicious damage by tenant, guest or someone else|
|Water and oil leaks|
|Demolishing and removing debris|
|Furniture and furnishings|
|Keys and locks|
|Locating the cause of damage|
|Loss or rent during repairs|
|Meeting building regulations|
|Mortgage discharge costs|
Do I have legal liability?
Yes. All policies have a limit of $20 million from any legal claims and costs. It extends to your building if you are required to pay compensation for death or injury on your property and landlord contents that cause death or injury.
What exclusions are there?
Specific exclusions may depend on your personal circumstances or the current state of your home and contents. Be sure to speak with your insurance broker about exclusions before you take out any policy. General exclusions can include loss, damage or injury as a result of:
- Tenant neglect, carelessness, poor housekeeping and hygienic living
- Rust, mould, depreciation or wear and tear
- Earth movements unrelated to earthquakes
- Actions of the sea
- Atmospheric conditions or extreme temperatures
- Vermin or insects
- Tree roots, felling or lopping
- Lawful seizure or illegal activities you are involved in
- Mechanical, structural or electrical failure
- Business interruption, consequential financial loss or other non-financial loss (inconvenience, distress, etc)
- Intentional and deliberate actions by you or someone acting with your permission
What excess do I need to pay?
Excess is your share of any claim for damage, loss or injury covered by your policy. Each claim requires its own excess and you may have to pay more than one excess. For example, if a fire damaged your house you would need to claim for the damage and pay an excess. If the house was unusable, you could claim for loss of rent, which would require an additional excess.
How do I make a claim?
After dealing with an incident, including contacting any emergency services and collecting relevant documents and reports, contact NRMA on 132 132.
Alternatively, you can go to insuranceonline.nrma.com.au to lodge your claim online or visit an NRMA office branch if you would prefer to speak in person.