Insurance
Thoughts...

We are neither qualified nor allowed to give insurance advice. These are just some things that we suggest you discuss with your Insurance professional.

  1. Should I take out a Landlord Extension policy? We say yes...
  2. Am I covered for intentional damage? Check for peace of mind.
  3. What kind of tenant background checking do you require? See the fine print point below...
  4. How often must I conduct property inspections? Usually every 3, 4 or 6 months...
  5. Do I have to have undertaken a pre tenancy meth test in order to be covered? Most don’t require this...
  6. Are there different excesses payable for different types of claims? These can be.

Landlords extension insurance is an option many Landlords tack on to their house policy at an additional cost. Cover might include abandonment by tenant, malicious damage, contamination and loss of rents.

“We need to know who your insurance company is, the type of policies you hold and the excess or excesses payable as this is required to be recorded on all tenancy agreements. You should also update us if you make any changes to your policy in the future.”

All insurers fine print will advise you that must have a written tenancy agreement, keep written records of background checking for all adult tenants, plus complete property condition reports and routine inspections at no less than their stipulated intervals. We do this. Everyday. But you need to tell us the inspection frequency for your policy and be comfortable with what your Insurer is offering you.

Who Pays...

Information from Tenancy Services website.

Tenants need to tell the landlord if they know of any damage or need for repairs. If the tenant does not notify the landlord as soon as possible the landlord may be able to claim some of the costs of repairing the damage from the tenant if it gets worse.

Intentional damage

If a tenant (or their invited guests) intentionally damage the landlord's property, the tenant must tell the landlord. The landlord can ask the tenant to repair the damage, or to pay the cost of replacement or repair.

Careless damage

On 27 August 2019, new legislation took effect, which will affect tenants' liability for damage. (See Holler versus Osaki) If tenants or their guests carelessly damage a rental property, they are liable for the cost of the damage up to four weeks' rent or the landlord's insurance excess (if applicable), whichever is lower. Tenants get the benefit of the landlord's insurance. If the landlord does not have insurance, the tenant will be liable for the full cost of careless damages.

Landlords can't ask for or accept more than that limit. Insurance companies can't chase tenants on the landlord's behalf for the cost of repairs for careless damage.

If the landlord and tenant can't agree who should pay, either can apply to the Tenancy Tribunal.

If any damage occurs, it is for the landlord to prove that the damage is not fair wear and tear. Following this, the tenant must prove that the damage was either:

  • Careless (and not intentional), or
  • Neither careless nor intentional. If the damage is neither careless nor intentional, the tenant is not liable.

Tenants are not responsible for repairs or damage arising from burglaries, natural events (such as storms, floods and earthquakes), or fair wear and tear.

Tenants are responsible for insuring their furniture and personal effects.