3 of the most common BMT landlord Insurance claims

BMT Insurance — Wed, 20 Dec 2023 06:15:53 +0000

Landlord’s insurance is a type of insurance specifically designed for individuals who own and rent out residential or commercial properties. It provides coverage and protection for landlords against various risks and potential liabilities associated with property ownership and rental activities. Things don’t always go to plan and claims are submitted to insurers to fix or replace assets damaged by tenants, bad weather or to recoup losses of rent. BMT Insurance has listed the top three claim types to be aware of when owning an investment property. 1. Water damage/ Storm Damage Water damage makes up 46 per cent of claims which can be described as ‘escape of liquid’. This includes items such as leaky pipes and wet areas sealed incorrectly resulting in mould and damage to adjoining walls, flooring, and carpets. Storm damage and water coming in from storm damage via cracked roof tiles also contribute highly to claims made by clients. If a claim of this nature is denied by an insurer it’s generally due to a lack of maintenance or poorly fixed assets (such as roof tiles). Having a documented maintenance schedule in place is essential to provide documentation that your property is well maintained. 2. Accidental damage/ tenant damage Tenant damage makes up 33 per cent of claims. Tenant damage can occur to the property either intentionally or unintentionally, this could be accidental damage or malicious damage, or damage that’s deliberately caused but without malicious intent. Accidental damage can be almost anything. Some examples include spills on carpet, hot pans burning and marking counter tops and holes and cracks in walls. Deliberate damage is something the tenants have done deliberately but not with malicious intent, like hammering nails into the wall to hang pictures. Malicious damage can be actions from tenants such as kicking holes in a wall or throwing paint on carpets. Not all landlord policies are equal and not all policies cover accidental damage. To ensure accidental damage is covered you will need an accidental damage policy rather than a listed events (also known as defined events, events listed) policy. With accidental damages being a major claim type, an accidental damages policy ensures broader coverage. 3. Loss of rental income The third most common landlord insurance claim is loss of rent which makes up 17 per cent of total claims. Loss of rental income can occur for various reasons, such as, when a tenant defaults on their rent and abandons the property. In other cases, if a claim has resulted in the property becoming uninhabitable due to damage or ongoing repairs, loss of rent may be claimable. Fair wear and tear and damage over time Landlord insurance policies will often exclude fair wear and tear and damage caused by not maintaining the property. It’s important that landlords understand property maintenance is essential and landlords’ insurance is not a substitute for appropriate maintenance. For instance, if stormwater entered your investment property which resulted in damage, your insurer may refuse to pay the claim if the roof has cracked or has missing tiles as this may have caused more water to enter the property than if the roof was better maintained. Here are some basic items for a maintenance schedule (this is a guide and shouldn’t be assumed as professional advice). Maintenance schedule: Electrical fittings and equipment HVAC Systems All wet areas – toilets/ showers/ baths/ sinks (including the sealing, grouting and moisture behind tiles) Plumbing Building interior – floors/ ceilings/ walls/ doors/ infestation Building exterior – roof/ paint/ railings/ gutters/ driveway/ pathways/ trees/ shrubs/ windows Smoke detectors Alarms Landlords should consult with specialised insurance brokers, such as BMT Insurance who can ensure they’re correctly covered for any potential scenario. Our expert team has a wealth of experience in the insurance industry and access to a range of construction cost data through our Quantity Surveyor specialists. This data has been developed over a twenty-year period and is continually refined to reflect the dynamic construction industry. To learn more about BMT Insurance and how they can help you with your landlord insurance claims, contact the team on 1300 268 467 or Request a Quote.

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3 of the most common BMT landlord Insurance claims