Hi,
Big thanks in advance to all you good people who help with input on this one.
Six weeks ago I had handover on newly constructed IP which I had built in Bris (I’m in Vic.). Just prior to handover and settlement I arranged for building insurance.
First tenants signed lease yesterday and were due to move in on Sat. but property manager called me today and said that house had been damaged inside and that he had called police. He said he is unsure of extent of damage at this stage, doesn’t know yet if anything stolen but all taps had been left on (house flooded) and there appears to be no sign of forced entry.
Now it gets good!
First thing I did was call my insurance company and after providing details I’m told that this would not be covered due to insurance policy stating that such acts are not covered when house is unfurnished for more than 30 days. What the!
I find this an amazing clause considering when I had arranged insurance I informed that house was an investment property and the name of the insurance policy they provided is Secure Landlord.
I would imagine empty investment properties for more than 30 days could be quite common (not that we like it that way).
Having only entered the world of property investment in the last year and only possessing two IP’s so far I
would love to know if this is a common loophole for insurance companies and how seasoned investment veterans cover themselves with regard to insurances.
Cheers PY.
Big thanks in advance to all you good people who help with input on this one.
Six weeks ago I had handover on newly constructed IP which I had built in Bris (I’m in Vic.). Just prior to handover and settlement I arranged for building insurance.
First tenants signed lease yesterday and were due to move in on Sat. but property manager called me today and said that house had been damaged inside and that he had called police. He said he is unsure of extent of damage at this stage, doesn’t know yet if anything stolen but all taps had been left on (house flooded) and there appears to be no sign of forced entry.
Now it gets good!
First thing I did was call my insurance company and after providing details I’m told that this would not be covered due to insurance policy stating that such acts are not covered when house is unfurnished for more than 30 days. What the!
I find this an amazing clause considering when I had arranged insurance I informed that house was an investment property and the name of the insurance policy they provided is Secure Landlord.
I would imagine empty investment properties for more than 30 days could be quite common (not that we like it that way).
Having only entered the world of property investment in the last year and only possessing two IP’s so far I
would love to know if this is a common loophole for insurance companies and how seasoned investment veterans cover themselves with regard to insurances.
Cheers PY.
