Loss of rent Insurance

Hi Guys

Have a small two bedroom unit in Sydney

Renters abandoned the place to months ago, left the place in a mess ...food, furniture, appliances and everything.

Ive had Landlords insurance with CGU (Rent default and loss of rent) for the past eight years. Would the insurance cover the cleaning to make the place habitable.

Everything was done by the property manager
Notices in time
Eviction
Lease in place
Tribunal granted possession of the property

Thanks in advance

Sonny

 

You'd have to read your specific policy for details but generally for most insurers the bond covers cleaning / junk disposal / water bills. Insurance covers lost rent while tenant there, lost rent while fixing property up, lost rent while finding a new tenant. The amounts of each of those components and excess payable vary widely.

 

I can't think of any insurers that will cover cleaning of that nature.

 

Have you submitted a claim?

 

Cleaning is usually covered through bond until it is exhausted and then they may consider other items depending on your policy. For example, water arrears (although unlikely in most units) have been known to be paid before.

My advice would be to lodge the claim ASAP, even before you have all relevant documents. This opens the claim up and supporting evidence can be submitted as it arrives to expedite the process. Depending on the insurer you will also get loss of rent cover prior to the finalisation of other parts of the claim to help you support your cash flow.

- Andrew

 

i have had similar issue.

Rental arrears was covered by insurance and some damages but
Insurance did not cover:
- clean up costs ( i paid $1320 for rubbish removal)
- carpet damage by pets ($3200)
- garden damage ( $1500)

Joys of landlord!
I suggest check your policy and then make a claim.

 

Which insurer? EBM covers pet damage im fairly sure.

 

Waiting two months to lodge a claim may affect how much rent is insured. Insurers like to manage the loss down rather than act patiently and eventually pay 100% of your loss.

 

ANZ

 

What was the outcome in the end? Carpet damage by pets is always a tough one. It pays to read the fine print before taking on any insurance product

 

Got it done myself

 

Ive yet to come across an insurer who covers any form of cleaning, unless its deemed malicious eg getting a spray gun and spraying the entire place (messily of course)