Claiming loss of rent - AAMI

Discussion in 'Property Management' started by beachgurl, 17th Dec, 2015.

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  1. beachgurl

    beachgurl Well-Known Member

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    Has anyone had success claiming loss of rent in a periodic lease with AAMI? The tenant has been an erratic payer so we didn't offer her a second fixed term lease. As she was 2 weeks out of the fixed term lease at the date of the current arrears I've been told they would pay only 2 weeks rent rather than 13. So the excess would be higher than the claim. Happy days.
     
  2. Xenia

    Xenia Well-Known Member

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    Yes we've put claims through AAMI before, they pay bits of it and make up their own rules on lease end dates.

    Use one of the specialist insurance companies - Terri scheer, property insurance plus or EMB, the insurer has to first understand investment properties and leases before they can insure them.
     
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  3. beachgurl

    beachgurl Well-Known Member

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    I transferred the rest of my portfolio to EBM earlier this year but as this tenant was in arrears I couldn't move this policy across. As soon as the sheriff gets this woman out I'll change it.
     
  4. brettc

    brettc Well-Known Member

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    The "periodic tenancy" or "lease continuation" catch is a ripper with some of the major direct insurers, we hear this one all the time unfortunately. It often gets down to their definition of a lease as they require it be a "fixed term" without provision for it to include a "tenancy at will" which immediate follows the fixed term, so once it expires the rules often change.
     
  5. Threebythree

    Threebythree Active Member

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    old thread but still relevant.
    ^ PDS for AAMi says - up to 2 weeks rent if on periodic rental w/ max of 6000.
    Looks like its time to move.
     
  6. Phoenix Pete

    Phoenix Pete Well-Known Member

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    Honan also cover periodic leases.

    But in all seriousness, these other insurance companies obviously don't understand that the tenant is not required to renew the lease after the initial fixed term is about to or has expired.

    Owners who insure their investments with such insurance companies are doing so at their own risk unfortunately.

    CAVEAT EMPTOR applies big time here.