Insurance companies not paying out unless fixed term lease in place??
- Thread starter ChrisA1
- Start date
Further consolidates the reasons to use a professional insurance broker who know their policies. The devil is in the detail.
That makes stuff all difference during the floods in Brisbane a few years back as several in this site found out very quickly like myself,even with above average intelligence and skill-set the devil is not always in the detail just the way one person see a flood and the other sees it very different and the one left holding the can is yourself..
Looks like an email to CGU to ask the specific question here. I asked some specific questions to TS and EBM and received good answers that gave me more clarity about the insurance coverages.
Strange. I rang AAMI two days ago and was told the opposite (periodic lease and a fixed term lease less than 12 months would impact the policy). The woman I spoke to confirmed it with at least two others.
See what they will confirm to in writing (ie emailed response)?? I think then you'll know where you stand.
It will be interesting to see what they confirm in writing. The problem with the AAMI wording is more that it could be open to question in regard to what the "tenancy period" is, they define the Rental Agreement as:
Rental agreement means the agreement between your tenant and you or
your agent which sets out the terms and conditions of the tenancy including the
tenancy period and the amount of rent payable to you.
So as long as your lease is clear on what happens once the fixed period is up and that the "agreement" is still in force, you'd like to think you should be okay. The concern being the specific reference to the "tenancy period", you wouldn't want them to be able to argue that once the fixed period is up there is no longer a valid rental agreement.
Aproperty manager will no doubt clarify this better, but that sounds a strange way to put it as a "periodic lease" is simply a lease continuation, there is no set period for it, otherwise it would not be a periodic lease. Presumably there is still a requirement to give notice that they will be moving out (varying by State) but that doesn't appear to be what they are referring to. It gives me the impression they don't understand what "periodic" is referring to?
NRMA will only cover 'loss of rent' up to the end of lease period.
I had a tenant whom I evicted for non-payment of rent last month (also malicious and accidental damage).
His lease was due to end on 14/11/13 and NRMA's cheques will end then.
NB: Make sure you have an Entry Condition Report for every tenant. This is needed when you make a malicious damage claim.
I had a tenant whom I evicted for non-payment of rent last month (also malicious and accidental damage).
His lease was due to end on 14/11/13 and NRMA's cheques will end then.
NB: Make sure you have an Entry Condition Report for every tenant. This is needed when you make a malicious damage claim.
A month ago I posted a letter to CBA asking this question. Ive been overseas and need to check with my secretary if they have replied but assuming that they have not actually replied to my question yet. When I called them prior to my trip the useless sales staff had no idea what I was talking about. I had to explain the differences between the lease agreements but they still had no clue and thats why I decided to write a letter. I will post a thread once I find out.