- We settled 4,835 claims – that’s an average of 21 claims a day
- We paid out $44.5 million
Without landlord insurance, more than 4,581 investment property owners would have been left to cover the costs of damage and loss of rent on their own. Landlords like these…
Claim example one – when the worst happens:
Little did the landlord know that when they went overseas, they would return to find their rental property completely trashed.
The alarm was first raised by concerned neighbours who reported the property being misused. Acting on this, the landlord instructed their property manager to carry out a routine inspection. Significant damage was discovered, prompting the landlord to issue a notice for the tenant to vacate. However, due to an error in issuing the notice, the tenant was able to remain in the property longer.
Unfortunately, the extra time allowed the tenant to inflict even more damage. When the eviction finally took place, with police assistance, the full extent of the destruction was uncovered.
Among the wreckage caused by the tenant were severely damaged front gates, which had been rammed with a vehicle in an attempt to force entry, and significant structural damage to the interior, including meth contamination. The exterior of the property also bore the brunt of unauthorised building work, which required demolition, along with asbestos buried in the backyard. On top of that, all manner of abandoned contents was left strewn onsite.
The total damage resulted in a claim for $114,000, while an additional $12,500 was paid for loss of rent. Note: this claim is still being finalised, and the total payout amount is yet to be determined.
Heads up! While thoroughly vetting prospective tenants and entrusting the management of a rental property to a professional agent can significantly reduce the risk of tenant-related claims, it doesn’t eliminate all potential issues. This is why having a robust landlord insurance policy that includes coverage for tenant-related risks is vital. It’s also crucial to follow the correct procedures for tenant evictions to avoid incurring losses that insurance may not cover.
EBM RentCover stands out as one of the few landlord insurance providers offering coverage for drug lab cleanups and meth contamination—a critical safeguard for protecting your investment.
Claim example two – when your guest is light-fingered:
Like many short-term rentals, the landlord’s investment property was fully furnished and equipped with everything guests might need, including entertainment features like a home theatre system, gaming console and controller, portable Bluetooth speakers, and a Wi-Fi router. Unfortunately, one guest decided to take more than just memories when they left, stealing all the entertainment equipment as well as the owner’s $1,200 Dyson vacuum. In total, the guest made off with more than $4,500 worth of items, for which EBM RentCover compensated the landlord.
Note: If items are stolen, landlords must report the theft to the police before making an insurance claim.
Heads up! This case highlights the importance of having landlord insurance specifically tailored for short-stay rentals. RentCover Short-Term is designed to address the unique risks of short-term leasing, whether through corporate stays, holiday lets, or platforms like Airbnb. Unlike most landlord contents policies that cover only fixed items, RentCover Short-Term provides protection for most contents in the property (check the PDS for a detailed list), offering peace of mind for landlords navigating the short-stay market.
Claim example three – where there’s smoke, there’s fire:
Where there’s smoke, there’s fire—and damage claims. A fire engulfed a neighbouring property, and while it didn’t spread to the landlord’s three-storey unit complex, it caused significant damage to common areas and three of the seven units.
The complex sustained external damage, including broken windows, charred timber cladding, heat-damaged PVC pipes, warped signage, cracked lights, and damage to in-ground plants along the driveway. Around half of the timber paling fence was destroyed. Three units also suffered smoke, soot, heat, and charring damage, along with cracked and broken windows, forcing tenants to vacate temporarily.
With a RentCover Platinum policy, the landlord’s building, contents, and tenant-related losses were covered. A $186,000 claim was made for damage to the premises, which included costs for make-safe measures, expert reports, restoration, and reinstatement. An additional $16,000 was claimed for contents restoration and replacement, alongside $15,000 for loss of rent. In total, the claim amounted to $217,000.
Heads up! Landlord insurance policies require taking action to prevent further loss or damage. In this instance, the landlord acted promptly by boarding up broken windows as soon as it was safe. EBM RentCover’s loss adjusters were on-site within days of the fire, arranging additional make-safe works to minimize further damage and disruption.
Claim example four – when your tenant won’t pay, and they won’t leave:
The tenancy had been going smoothly until the tenant fell into arrears. Following the legal eviction process, the landlord issued a termination notice after the rent was overdue for 14 days, as required by legislation. The tenant was given another 14 days to vacate, but refused to leave at the end of the notice period. Consequently, the landlord had to apply to the tribunal for a termination and warrant of possession order. When the tenant still did not comply, a sheriff’s officer evicted them, and possession was returned to the landlord. Unfortunately, the landlord lost 11 weeks of rent, totaling $5,280, due to the tenant’s decision to stay without paying.
The landlord submitted a claim for $6,100, which included rent default for six weeks, denial of access for five weeks, lock replacement costs (since the eviction was carried out by a bailiff), and legal expenses.
Heads up! This claim serves as a reminder that landlords and their agents must act quickly and within the law when dealing with eviction and loss of rent claims. Prompt action is essential when addressing rent arrears, as there is a limit on the amount of loss of rent that can be claimed for rent default. Following the legal eviction process is crucial when necessary. EBM RentCover also offers up to $5,000 in legal expenses coverage for landlords or agents who need to go to tribunal or court to evict a tenant.
Claim example five – when your tenants are hoarders
TV shows about hoarders might seem like light entertainment, but this landlord didn’t find it amusing when their tenants left behind a mountain of mess and rubbish. In just five months, the tenants filled the three-bedroom rental with numerous bags of garbage, caused extensive damage, and failed to clean up after their animals.
The landlord sensed trouble shortly after the tenants moved in, as neighbors began complaining about unpleasant odors and suspicious activity at the property. An inspection confirmed the landlord’s fears, leading to the eviction of the tenants. A loss adjuster was appointed to assess the damage, but the property was in such disarray that it was unfit for inspection due to animal excrement. A specialist cleaner (occupational hygienist) had to put in considerable effort to clean the premises before a proper assessment could take place. The findings revealed extensive damage, including the need to remove and dispose of kitchen cabinetry, flooring, windowsills, furnishings, wall linings, and skirting boards, along with comprehensive cleaning and sanitizing. The repair works took 188 days, resulting in cleaning and repair costs totaling approximately $87,000 (note: this claim is still being finalized and the total payout amount is yet to be determined). An additional $11,000 was claimed for loss of rent.
Heads up! While tenants typically cause more damage than pets, EBM RentCover is one of the few landlord insurance providers that offer coverage for pet damage. Up to $70,000 is paid for tenant damage (including pet-related damage), and there are no onerous conditions attached to this pet cover, such as requiring the pet to be named on the lease.
Claim example six – when yours becomes theirs:
The story begins with two bricks and a thief. The thief used the bricks to smash through a window and gain entry to the house. Once inside, they pulled out the air-conditioners and, for good measure, ripped out some copper piping—stealing around $7,500 worth of goods and materials. After factoring in the cost of repairing the smashed windows and replacing the locks, the total claim exceeded $9,000. NOTE: When items are stolen, it’s essential to report the incident to the police before making a claim.
Heads up! This claim highlights the importance of having the right type of landlord insurance policy. Initially, the owner had taken out a RentCover Ultra policy, which covers contents and tenant-related risks. Fortunately, they had switched to a RentCover Platinum policy before the break-in. Platinum policies include coverage for the building, and since air-conditioners and copper piping are considered part of the building rather than contents, they were able to claim for the loss. Had they not transitioned to a building and contents policy, EBM RentCover might not have paid out the claim.
Lessons learned:
From routine claims to those that are a little more complex, EBM RentCover has been there to support landlords who have suffered losses and has helped them get things back to normal at their rentals.