PM - A sad but classic case which highlights the need for landlord insurance

A sad but classic case which highlights the need for landlord insurance

Not all insurance claims are for tenant damage or rent default. You may have heard about the real estate agent in Perth some time ago who held a viewing of a property with a number of prospective tenants in attendance. The unfortunate property manager did try to get in touch with the existing tenant, but failed to make contact. At a prescribed appointment time, the agent opened the front door to view the property with a number of prospective tenants in tow only to discover the reason for the tenant not replying. They had passed away in the home.

We talked to EBM Insurance about situations such as this who gave us their account of a similar case in relation to a tenanted death.

On that occasion, while the circumstances of the case involve sensitive details, the deceased tenant was not discovered until some weeks after their death. This meant that the landlord, who already faced a period of rental loss, was to discover they suddenly had no tenant at all.

On top of this, access to the premises was restricted while police, the coroner and other officials conducted investigations, further compounding the landlord's loss of rent. But most costly of all, the landlord's property now required extensive professional cleaning too.

"Looking at the facts of this case, it's easy to imagine anyone in the landlord's position being quite distressed," EBM said.

"This case involves loss of rent, loss of tenant and extensive property damage too, not to mention the stress related to the situation."

EBM said as soon as they were notified of the claim, they immediately began arranging for the landlord's property to be restored to its former condition.

Furthermore, the landlord was also compensated for lost rent. And with many of the items in the property damaged and unrepairable, the landlord was compensated for this as well.

"In total, the claim for this case amounted to more than $4,000,"

"And while there was an immediate benefit to the landlord in having his loss of rent covered and his property restored, the insurer’s quick work ensured new tenants could be found and moved into the property without delay."

"This case serves as a timely reminder that landlords can often find themselves victims of circumstances out of their control and this is where the protection offered from reputable insurance firms is needed most."