Landlord Insurance didn’t pay?

Do you know what your landlord rental policy covers you for? (and what not)

There is a post going around about an awful experience with an insurance company.

Sorry to hear.

But it was on the policy and appeared to be a standard for landlord rental policies.

So, maybe it’s a good time, with all the extra time you’ve got,
to revisit your polity

What was the issue?

An excess applies to each event. Say, $1,000 excess per event. Not as the person expected one excess for all the damage discovered.

Here is an example. I inspected a property on the 1st of February, and everything was in order.

By mid-March, the tenant stopped paying rent and then abandoned a fixed-term tenancy.

When the rent payment stopped, and the tenant did not respond to calls, txt, and emails, I drove to the property.

The tenant abandoned the property, and the damage was very noticeable.

There was a nasty smell from the carpet (still smelled after professionally cleaned)

Vinyl damaged at four places.

Hole in a door.

I claimed for all of the above, but what did the insurance pay?

Question? Was the damage caused in one event or several events?

• Carpet – no smell noticeable during the inspection in February and November.
• Inspections have been documented. So, I could use it as evidence.

• The insurance company agreed that this happened over a short time.

• It was one event, and one excess applied.

• Vinyl – damage in different places. Likely happened when the tenant moved in or out.

• Hole in the door. Cost less than the excess.

• Hence, a number of events and for each event, an excess applies.

• The excess was greater than repairs, and no insurance payout.

• Loss of rent. Payout of 8 weeks to the proposed end of the lockdown.

I was a bit upset, like the person who complained in a post.

However, it’s clearly in the policy, and I forgot.

My fault to have unrealistic expectations.

What can you do now?

Review what’s in your policy and what excess you have.

Do you have a high excess to the same on your premium?

In the current situation with the lockdown and expected prolonged economic impact, are you better off to decrease the excess? So, your burden is smaller for each event?

Maybe not.

But at least having reviewed your policy, you know what to expect should you need it.