Insurance Claim

Discussion in 'Legal Issues' started by thesuperman, 13th Feb, 2020.

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  1. thesuperman

    thesuperman Well-Known Member

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    When a real estate agent handles an insurance claim on behalf of a landlord, and the agent charges the landlord a fee to handle this, is this usually generally able to be claimed together with the insurance claim or is not claimable at all?
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Generally not.

    However, most insurers do allow for legal expenses, so what i do is charge for attending tribunal (which usually results in an insurance claim) and not for doing insurance claims, and then that part is 100% covered by the good insurers such as EBM.
     
  3. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The agent fee is deductible as the agent cost is necessarily incurred in the management and production of rental income.

    I dont understand what you mean by :
    The insurance claim will usually bring proceeds with a offsetting cost that is either deductible or maybe depreciable. In a perfect world you may receive $1,000 and outlay $750 and the $250 loss is the excess. Did you pay it through them reducing the payout or did you pay it to submit the claim ? The damage could be a asset scrapping too. Insurance claims generally reflect a inflow not outflow. If the insurer replaces like for like then is there a cost apart from the excess ??

    Can you add the agent fee to the loss for insurance - No. Its not a insured event. same as you cant claim for your time and inconvenience or a flight to inspect the damage etc. Insurance pays for defined events.
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

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    We're not talking about tax here sorry mate
     
  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The post was a bit hard to understand to be honest. I often get this same question posed from both viewpoints. Tax and insurance....since both go hand in hand.
     
  6. thesuperman

    thesuperman Well-Known Member

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    Ok thanks, I thought it wouldn't be but wanted to be sure just in case :)