rental arrears insurance claim periodic lease

Discussion in 'Property Management' started by Mark, 28th Jul, 2017.

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  1. Mark

    Mark Well-Known Member

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    The tenants stopped paying rent for about 3 weeks and was informed to leave by the property manager. They left 3 weeks after receiving the notice of leave. The tenants were on periodic lease. How many days of rental areas i can claim back from the insurance company? I heard that for periodic lease i can only get the compensation from the date the tenants stop paying rent to 2 weeks after issuing notice of leave. Is that correct? Thanks
     
    Mark, 28th Jul, 2017
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The insurer would be the one to ask. Policies define the cover.
    You can invalidate a claim through allowing arrears and other issues. You rinsurer may also limit the period of loss until a new tenant or just a few weeks. excess ?
     
    Paul@PAS, 28th Jul, 2017
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  3. brettc

    brettc Well-Known Member

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    As a general rule a landlord insurance policy will only cover what the tenant is legally liable for, and as the notice period on a periodic lease varies by State, the period of rent covered will vary (by State). Secondly, it will of course depend entirely on which specific insurance policy you have. There are some which have little or no cover on a periodic lease as they require the tenant to be on a "fixed term lease". You will need to check specifically as all policies will vary as to what cover is included.
     
    brettc, 31st Jul, 2017
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