Landlords / Building Insurance

[nightowl]

Hi

Can anyone recommend a reputable Insurance company that covers a landlord against deliberate damage or fire (Total Loss) by the tenant. Examples 1. Tenant burns down house intentionally, 2. Tenant burns kitchen bench with hot pot
3. Tenant damages house and lets house get so filthy it requires new carpets and wall linings etc. Many companys dont cover intentional damage by the tenant or damage resulting from the application of heat. (Hot Pot on Bench)

Any help really appreciated. Its my first property, yes I finally got off the fence , and I dont want any nasty surprises down the track

Thanks in advance


Nightowl

 

[JoannaK]

Hi Nightowl,

try using the search facility - there've been heaps of discussions on insurance.

Also, the real estate institute in your state can help arrange insurance for you.

 

[Sim]

In particular you need to be careful to note the difference between "deliberate or intentional damage" and "malicious damage or vandalism".

CGU defines these things as:

Deliberate or Intentional Damage

An act done without the owner's permission and with the full knowledge that the action will alter the current state of the property, and without any malice, vindictiveness or spite.

This does not include:

• tenant neglect, carelessness, poor housekeeping, or unhygenic living habits
• damage occurring during maintenance operations carried out by the tenants or anyone acting on their behalf
• damage caused by failure of tenants or their visitors to control their children
• damage caused by pets belonging to tenants, their visitors or children of the tenants or their visitors.
• malicious damage or vandalism
• scratching, dinting, chipping, rubbing or chafing

... {some other exclusions omitted}

Malicious Damage or Vandalism

A wrongful act motivated by malice, vindictiveness or spite with the intention of damaging the property.

{the list of exclusions is similar to that above}

Note that I have merely put the interesting stuff in the above quote - you should not rely on this, but should check your own policy documents.

CGU provides optional "rent default" and "tenant damage (deliberate or intentional)" insurance. I beleive that they do not cover "malicious damage or vandalism".

Try checking with a good insurance broker - they should be able to help you find suitable cover.

 

[XBenX]

there is some good previous posts on this, i made some notes somewhere but its so much easier to just use the search engine...

point to remember is make sure the insurance has a decent liability cover (esp for strata owners) as they normally think they are covered because the strata scheme has this type of insurance but dont remember its only for the common areas