Reminder for your Landlords to check their insurance

Discussion in 'Property Management' started by Michael Mitchell, 8th Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    764
    Location:
    Brisbane
    Had a case where a sole occupant tenant committed suicide and it was 4 weeks before the body was discovered, suffice to say it wasn't pretty and the forensic cleaners bill alone was $15k not to then mention new carpets, dry wall, ongoing cleaning to combat the repeat spate of maggots that hatch from the fly eggs in waves days/weeks after etc. This particular landlord, I suggested no less than 5 times by email in a 2 year period they change insurers to another I suggested after a previous incident where they weren't covered, they didn't change, and now they've been left without cover again. It's rare, but this can and does happen unfortunately, so keep it in mind when discussing insurance with your Landlords! :/
     
    Rugrat, datto, KayTea and 2 others like this.
  2. bunkai

    bunkai Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    783
    Location:
    Sydney
    Which insurer / policy didn't cover this?
     
    Dean Collins likes this.
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,880
    Location:
    Australia wide
    I had a tenant die in one of my places once.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,378
    Location:
    Sydney or NSW or Australia
    I betcha that they never did that again... :eek:
     
  5. jim1964

    jim1964 1941

    Joined:
    18th Jun, 2015
    Posts:
    1,249
    Location:
    Adelaide S.A.
    I just had one purchaser die 2 weeks before settlement, partner went into deep depression, and didnt want to go through with the contract.
     
    Terry_w likes this.
  6. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    764
    Location:
    Brisbane
    AAMI, haven't got a copy of the policy docs
     
  7. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    3,472
    Location:
    NSW
    +1 for me too. It was a granny flat tenant l. The tenants in the front house noticed his mail box filling up and so they found him.

    It was just natural causes for an older retired man. His family took care of everything so there was no need for an insurance claim.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,880
    Location:
    Australia wide
    When you think about it there must be a few people die every day in properties somewhere.
     
  9. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    3,472
    Location:
    NSW
    I was prompted to lookup some numbers after seeing those advertisements on TV over the Christmas holiday period for feeding the hungry in the 3rd world. Their claim was that 18,000 children die each day.

    The numbers are staggering. 151,600 people die each day. That’s 55.3 million people who die each year. As you say @Terry_w many must do so in properties.
     
    Michael Mitchell likes this.
  10. Propagate

    Propagate Well-Known Member

    Joined:
    17th Apr, 2013
    Posts:
    1,496
    Location:
    Melbourne
    ...and 360,000 are born each day. Almost double that that die. We're heading for disaster at this rate surely?
     
    PaulB likes this.
  11. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    544
    Location:
    NSW
    What category in the insurance does this fall under? Wouldn’t it just be a generic cleaning category, doesn’t matter what caused the need to clean, just the fact the tenants left it in a state that needs attention is enough?

    On a side note, when it comes to selling or re-leasing, is there an obligation to disclosed that someone passed away there?
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,378
    Location:
    Sydney or NSW or Australia
    Only If it was a crime and within the last 5 years (NSW)
     
    Dean Collins and giraffez like this.
  13. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    3,472
    Location:
    NSW
    I think you're mistaken. The death rate is 150,000+ die each day and almost double that are born each day.
    Heading for disaster? probably not, methinks :)
     
  14. willair

    willair Well-Known Member Premium Member

    Joined:
    30th Sep, 2009
    Posts:
    5,537
    Location:
    ..Village Idiot...
    Would it be possible to know which company does not cover this,as I have just checked the company we use booklet and paperwork and I can't find anything ..
     
  15. Propagate

    Propagate Well-Known Member

    Joined:
    17th Apr, 2013
    Posts:
    1,496
    Location:
    Melbourne
    Not sure I follow? You said what I said, almost twice as many people are born daily than die. So we're adding 150k people to the planet daily. Current projections reckon we'll be at almost 10 billion by 2050. We're decimating the planet as it is, what's it going to look like with another 3 billion people to cater for?
     
    Archaon, Skinman and wylie like this.
  16. mickyyyy

    mickyyyy Well-Known Member

    Joined:
    26th Jan, 2016
    Posts:
    726
    Location:
    Sydney
    @Michael Mitchell which landlord insurance companies do you suggest?

    I was chatting to a mate yesterday and he likes ANZ which has a few nice little extra's but does cost a tad more
     
    Michael Mitchell likes this.
  17. Tony3008

    Tony3008 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    721
    Location:
    Docklands, Victoria
    I've just renewed one of my TS LL policies and it explicitly covers loss of rent if the property becomes untenantable due to murder or suicide until two weeks after it becomes relettable, max 52 weeks. Carpets etc are covered under contents, but I couldn't quickly see where a forensic clean would be covered.
     
    Michael Mitchell and Terry_w like this.
  18. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    764
    Location:
    Brisbane
    I've personally used and recommend TSI. I've only been operating for just over 2 years and have 50 something properties under management so my experience with LL Insurers is not vast, and in that time there have been 3 which have had to make insurance claims, two of those not with TSI had a bad time, the one with TSI pretty much won lotto ha.
     
    mickyyyy likes this.
  19. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    764
    Location:
    Brisbane
    Suffice to say, it all comes down to buyer beware - a lot of people don't read their policies or ask the right questions and take out insufficient cover, which is not the insurers fault for not covering something not included in the policy..
     
    Skinman and mickyyyy like this.
  20. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sydney Multiple Areas Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,559
    Location:
    Australia
    I've always found the non-specialist LL insurance companies are the most frustrating to deal with and do their utmost to get out of paying. They simply don't care because they don't specialise and the cover is usually no where near what the specialist providers have.

    That's a shame as it appears you were aware and tried to help the client too!
     
    Archaon and Michael Mitchell like this.