NRMA landlord insurance

[sydboyz]

Hi

I have a tenant that were not paying the rent for up to 12 - 13 weeks now and they are being evicted by sheriff.

My concern now is that the tenant will not pay the rent in arrears and have to depend on the landlord insurance and rental bonds.

I spoke with NRMA about my landlord insurance policy and they told me that it will cover only up to 8 weeks and maximum of $3000 and it does not cover legal fees (tribunal, sheriff etc)

But my PM told me otherwise and quite different, they said they have claimed from NRMA before and got cover up to 52 weeks of rental loss. and include legal fees


Could someone that have claimed this insurance previously, clarify this for me?

 

[ziggy2214]

Its in the policy booklet

http://www.nrma.com.au/documents/policy-booklets/landlord-policy.pdf

Setling claims – under rent default (page 53)
If we agree to cover the claim, we will deduct from the amount
you are claiming
• the rent default excess, and
• four times the weekly rental amount. (an amount equivalent to the bond)
We will then pay up to a maximum of $3,000 (inclusive of GST) based on the weekly rental amount that is listed on your rental agreement,
and no longer limit the claim to 8 times the weekly rental amount.

 

[ziggy2214]

fyi

CGU will pay up to $5000 but they also deduct the excess and bond

http://www.cgu.com.au/cgu/pub/cgu/website/DocumentLibrary/Personal/Landlords/PID0300.pdf

 

[BMW308]

Insurance Problems

I have dealt with both GIO and NRMA - both being the "leading names" but both not being the best policy !!

These policies are cheaper ( $260/$270 per annum) BUT if something goes wrong and you have to give the first 4 weeks rent to them - that hurts !!!

I have personally dealt with Terri Scheer AND Ebm ( rent cover plus) and they are both true to their word ( and policy !) and dont make it hard to claim AND dont move the goalposts !!!

The cost on these policies is $325 per annum - a little more but at least you get a real claim !!

 

[sydboyz]

Thanks all for your advise

I was hoping that NRMA will pay me what i wanted but it seems to be more unlikely now


I am just curious if you guys have had rental default tenant previously, what is the longest weeks that they are in arrears?

My one being 14 weeks, for me it is a very high numbers and wondering if my PM have followed up the matter with the tenant quickly enough.

If they do not promptly deal with the tenant, surely there must be liabilities shift to the PM of not managing the IP properly

 

[BMW308]

there was another thread on here that explains this but in new south wales if the PM is doing the job correctly and doesnt get "done over" by a professional tenant that pulls out the "too sick to go to tribunal card" (instantly giving them another 2 weeks) AND it is not Christmas (that can cost another 4 weeks due to not being able to get a hearing or not being able to get the sheriff to carry out the eviction)............8.5 weeks is really about it -

at 13 weeks - someone didnt serve the termination notice at the earliest point OR forgot to apply to tribunal (at the earliest time) OR maybe got to tribunal and had incorrect paperwork !!!

SOMEONE STUFFED UP !!!!! FULLSTOP

 

[BMW308]

maybe the PM can get an order against the tenant at tribunal and possibly chase the tenant through empoyment OR where they have moved to ????

 

[Collector]

In NSW:

> Issue termination notice on 15th day (arrears) if sending termination noitce by post allow 4 working days for the actual date of service.
> Termination date listed on notice should be 14 days after actual date of service (not date notice sent if bb post)
> If tenant does not vacate on the termination date apply to the Consumer Trader and Tenancy Tribinal
> Hearing should take place between 7 and 21 days after application received.
> At the hearing the member will terminate the lease (so long as every thing is in order), the member would take into consideration the tenants and your circamstances in determining the date the tenant must return possession to you. This can vary from immediate to 4 weeks.
> If the tenant does not give you possession of the property on the date ordered you will need to get a certified copy of the order from the tribunal at take this to the Sheriff.
> The sheriff will tell you a date and time that they will go to the property and evict the tenant.

In answering your questionworst case)

15 days issue notice
4 days (working) for postage
14 days notice period
21 hearing date
28 days ordered termination date
2 days - certified copy of orders
7 days - sheriff to evict

91 days (worst case)