Landlord Coverage (NSW) - COVID19

Discussion in 'Property Management' started by PropDir, 20th May, 2020.

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  1. PropDir

    PropDir Well-Known Member Business Member

    Joined:
    16th Nov, 2018
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    316
    Location:
    Sydney, Australia
    Hi all,

    Are any of you aware of landlord coverage in relation to COVID 19, in cases where there have been rental reductions of properties or where a tenant is unable to pay rent and has had to vacate the property? Specific questions as follows.

    * Do landlord insurance policies generally cover such a situation (e.g. rental recovery when property has been vacant for a specified period)?
    * Is NSW government providing some type of funding to support above situation? If so, when will this come into effect.

    Thanks.
     
  2. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

    Joined:
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    1,023
    Location:
    Sydney
    Here is the link to the NSW government support: Six month moratorium on residential tenancy evictions during COVID-19

    Unfortunately its quite limited to a 25% stamp duty reduction.

    Landlord insurance will cover rent default if the tenant vacated with rent owing after bond, if a rent reduction was agreed, they generally only cover the agreed amount. No coverage for extended vacancies, realistically its a matter of pricing it to meet the market.

    Let me know if I can provide any more info :)
     
  3. PropDir

    PropDir Well-Known Member Business Member

    Joined:
    16th Nov, 2018
    Posts:
    316
    Location:
    Sydney, Australia
    Thanks Mel. Yes, this is the similar info I have been getting from the contacts I have spoken to recently.