Is rent cover worth the cost?

Discussion in 'Property Management' started by AndyPandy, 26th Mar, 2020.

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  1. AndyPandy

    AndyPandy Well-Known Member

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    Just read this on an EBM newsletter

    If my tenant gets Coronavirus and can’t work or pay rent, am I covered?
    If a tenant tests positive for Coronavirus, is unable to work for a period of weeks, and falls behind in rental payments, the losses are unlikely to be covered under EBM RentCover policies. However, remember that the amount of weeks they are likely to be unable to pay rent is low. According to the World Health Organisation, people with mild illness recover in about two weeks, or six weeks in more severe cases. That is two weeks (or a maximum of six weeks) of lost rent which the tenant may be able to catch up on with encouragement and support from the landlord or property manager.

    I'm wondering, if they only cover up to 6 weeks and have clauses like this one, is it even worth paying extra for rent cover every year? At $350 pw rent, 6 weeks would work out to $2,100.
     
  2. Darwin55

    Darwin55 Well-Known Member

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    It’s not being sick for a couple of weeks that’s the worry. It’s having no work to go to....
     
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  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    EBM and other specialist brokered Landlords policies cover a whole lot more than six weeks rent AND your tenant is far more likely to fall behind due to job loss or cut-down due to the necessary social distancing measures, rather than actually contracting the virus.
     
    Michael Mitchell likes this.
  4. TMNT

    TMNT Well-Known Member

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    @AndyPandy

    youll appreciate landlords insurance, when they fall 1 months behind in rent, dont pay for utlities, accidentally/deliberately put a hole in the wall when moving out, put a big scratch on the floor, break a door,

    and leave the house in a mess or leave an entire house worth of contents behind (no, its not covered, but you can take it out the bond)
     
    Michael Mitchell likes this.
  5. Shogun

    Shogun Well-Known Member

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    Like all Insurance PDS lists lots of ways for insurer not to pay
     
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  6. Angel

    Angel Well-Known Member

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    Not all workers are casuals with no sick leave entitlements. What if your tenant gets cancer or has a car accident and doesn't work for several weeks? Permanent jobs have sick leave and if a casual employee has it in their Super, and their employer has not stolen it, they can also access payments when sick for a longer time.
     
    Michael Mitchell likes this.