A common challenge that we face in claims under landlord’s insurance policies arises from the failure of the insured to maintain proper records.
Common situations we see are:
- The insured does not use a property manager. A landlord does not have to use a property manager but one thing that a property manager does is keep records. If the insured does not use a property manager, the insured needs to keep records – quite often they do not do that.
- There was no written lease agreement with the tenant or, if there was, it expired some time ago. Most policies require that the rent default cover will only operate if the landlord has a written lease with the tenant.
- There is no program for carrying our regular inspections of the premises. There have been claims in which the property was not inspected by the landlord or an agent for three to four years. The insurer denies indemnity on the grounds that the loss is the result of gradual deterioration or wear and tear. Regular inspections of the building are an important source of evidence required to refute those allegations.
If the opportunity arises, we would recomend you to speak to your Insurance Broker about the importance of some of these important management tools. Or call us on 1300 309 237 to discuss