Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP
intro image

News

06 April 2020 Cameron Micallef

REA launches new platform

CONTINUE READING

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

How to save commercial property during COVID-19 outbreak

April 06, 2020Cameron Micallef

The state government is being urged to save the commercial sector by allowing landlords a 12-month hiatus from paying land taxes. ...

REB_top100agents
top 10 agents

1

ALEXANDER PHILIPS

Year of Experience: 17

Support Staff: 5

Residential Properties Sold: 208

Total Value of Residential Properties Sold:

$614,864,500

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment
Yes, I've been the victim of workplace bullying
No
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
agent using smartphone 2 reb Agents after more tech solutions amid COVID-19

New research has highlighted the growing need real estate agents have for innovative technology solutions. ...

Agents after more tech solutions amid COVID-19

New research has highlighted the growing need real estate agents have for innovative technology solutions. ...

computer 850x400 How agents can best utilise proptech

With digital disruption showing no signs of slowing down, agents are being encouraged to utilise technology, rather than ...

searching the internet reb Real estate boss shares marketing tactics

The owner and CEO of an elite Queensland agency has revealed how being conscious of both print and digital marketing has ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Louis Christopher WEB How to analyse property data

Property data is undeniably a critical tool, but how does one navigate the abundance of information available without p ...

Graeme Hyde WEB What makes a high-performing office?

With 25 years of industry experience under his belt, Graeme Hyde understands the formula for a successful real estate of ...

Tara Bradbury WEB A completely paperless approach to property manage ...

Tara Bradbury launched Active Agents last year as a means of presenting an entirely paperless property management operat ...

James Lampropolous WEB A project marketer’s take on being a successful ...

As REB’s top-ranked project marketing agent with over 20 years of industry experience, James Lampropoulos advocates fo ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

real estate agent reb Moratorium does not mean rent-free

Landlords have received welcome news, with the Minister for Housing confirming there is no rental freeze during the mora ...

Calls to class real estate as ‘essential’

In the event of further restrictions in response to the coronavirus, an industry group is calling for real estate servic ...

forrent house reb 1 Eviction freeze only fixes one side of rental equa ...

The government is being urged to implement immediate rental subsidies for tenants bearing the brunt of COVID-19. ...

Peter Koulizos reb Wage subsidy to ‘relieve financial pressure’ f ...

The federal government’s recent JobKeeper wage subsidy is set to significantly help relieve rental and mortgage stress ...

EVENTS
REB Awards 2018 logo 01 1
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
rpm logo latest

Landlord insurance: What’s covered, what’s not

27 February 2020 Sharon Fox-Slater
Sharon Fox-Slater

Insurance providers would love to say that landlord insurance covers every possible risk an investment property may face. Unfortunately, they can’t, or the costs of insurance would skyrocket well beyond reach for most property owners.

Instead, they need to strike a balance, providing cover for the most common landlord risks to keep their own risk manageable and policy costs affordable.

Landlord insurance provides financial protection for the main risks investors face when leasing out property. Generally, this includes:

  • Tenant damage – accidental or malicious damage caused by tenants, their pets or guests.
  • Building cover – if the premises are damaged or destroyed by an insured event such as theft, fire, flood, cyclone, earthquake or storm.
  • Contents cover – for the landlord’s possessions only.
  • Loss of rent – resulting from an event the insurer has agreed to cover.
  • Legal liability – in case someone is injured or their property is damaged.
  • Costs associated with taking legal action against a tenant.

Policies and coverage terms differ between providers, so make sure to check the PDS to find out exactly what is covered in each policy — and also to identify what risks your landlord clients may face that won’t be covered.

Advertisement
Advertisement

Here are four common exclusions and why insurers don’t cover these eventualities:

  1. Wear and tear
    Property owners can’t claim the cost of replacing worn-out carpets and furnishings on their personal home insurance, and landlords can’t claim wear and tear on their insurance either. Insurance is designed to provide protection for unforeseeable risks — general wear and tear is not unforeseeable and is a routine cost of owning an investment property that owners need to budget for. However, if the property suffers damage because of an accident or a malicious act, then insurance may cover it.
     
  2. Mould
    An outbreak of the dreaded black fungus at a rental often results in a bit of back and forth between landlord and tenant about who is responsible for getting rid of it. What caused the mould determines who is responsible, but regardless of whether the cost rests with the landlord or tenant, it isn’t usually grounds for an insurance claim. Insurance does not cover mould damage because it considers mould growth avoidable and won’t usually cause damage if it is taken care of quickly.

  3. Tenant contents
    Just because the landlord has insurance on the rental, it doesn’t necessarily mean that the tenant’s possessions are covered. In offering cover to a landlord, the insurer is accepting the risks associated with the landlord’s property, not those of other parties (i.e. the tenants). It is only in situations when a tenant’s loss is attributed to the landlord’s negligence that the landlord’s insurance would come into play. So, tenants need their own renters’ contents insurance to cover their possessions in the event of fire, storm or theft (and also cover their occupiers’ liability).

  4. Tenant/landlord repairs
    Even though the tenants or landlord might be handy and partial to a spot of DIY, when it comes to repairs at the investment property, their handiwork is unlikely to be covered by insurance (side note: it may be covered if the tenant does something without the knowledge of the landlord). Having unskilled and unqualified people carry out repairs presents an increased risk of property damage or bodily injury, and it’s a risk insurers are usually not willing to cover. If repairs are needed, use qualified tradespeople who are appropriately licensed, registered and insured.

Market conditions

The property market is always a risk for investors and those risks can’t be passed onto an insurer. For example, delays finding a tenant (vacancy), poor capital gains, poor rental returns and yields, capital losses, property value declines or low demand are all risks that are part and parcel of the business of investing and won’t be covered by insurance. Although landlords can’t claim a general loss of rent, they may be able to claim if the loss of rent is due to a specifically insured situation, like tenant default or denial of access.

By Sharon Fox-Slater, managing director, RentCover EBM

Landlord insurance: What’s covered, what’s not
Sharon Fox Slater reb
lawyersweekly logo
Sharon Fox-Slater

Sharon Fox-Slater

Sharon Fox-Slater is the Managing Director of EBM RentCover, which protects more than 150,000 rental properties across Australia. She commenced a role with EBM back in 1993 and was part of the core team that helped launch one of Australia’s first landlord insurance policies into the market. She was also the first woman in Australia to complete the Advanced Diploma in Insurance Broking, and is well equipped to educate property investors and property professionals about the value of aligning with a specialist landlord insurance provider.

FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.