Over the course of owning a property, it’s almost inevitable that damage of some kind will take place, be it accidental or malicious. So, what can you as a landlord do when this happens?
Accidental damage from tenants
First be sure that the damage is your responsibility as the landlord to fix and will go into the property maintenance costs. In many cases if the tenant has done the damage, it’s up to them to fix it.
Of course, extenuating circumstances could be in place whereby the damage was due to a larger fault that was your responsibility as the landlord to fix, so knowing all the details before deciding the path to take is important.
If however, you do determine that the damage is yours to fix, there are some important things to know.
Before you claim
Although an assessment of the damage is important, if major damage to the property has occurred prioritise safety first and do not enter the building without the all clear from emergency services. Ensure that your tenants also receive this advice and do not attempt to enter an unsafe building.
If the damage has taken place due to a crime being committed, ensure that your tenants, or at the very least your property manager, has contacted the police to report the incident.
If a police report has been created, you will need to include this with your insurance claim. Where possible ask for the police report number so this can also be included with your claim.
Once the property itself is under control, check your Product Disclosure Statement (PDS) to ensure that you have a valid claim and that the event which caused the damage is not on the list of exclusions for your policy.
Your Insurance Broker can assist with this if you are at all unsure. Be sure to also check your excess amount so that you have an understanding of any out of pocket expense which may be incurred.
Making a claim
Contact your insurance broker as soon as possible if you need to make a claim and try to have as much information available as you can. Some details on the type of information you may need to have can be found here.
Making contact sooner rather than later can assist in getting the claim under way even if you don’t yet know the extent of damage to your property.
Getting a statement written from your tenants about what actually happened should be a priority so that no important details are forgotten over time. Of course, it’s essential to be sensitive to your tenants during this time also as it is their home and belongings which have also been damaged.
Your broker will take this information and use it to assist with lodging a claim on your behalf. If you are at all unsure of your policy details or number, simply contact your broker who will have this information stored.
Minimise the loss
Where possible and safe to do so, take steps to secure your property and protect any further valuables which may be inside.
Remember that it’s your responsibility as the investment property owner to ensure that it can be secured. You don’t want any more damage or theft of your tenant’s belongings after the initial damage taking place that you may be liable for if they were unable to secure the property.
This may include the removal of damaged or soiled items, erecting temporary fencing, replacing a window, lock or similar.
Be sure to photograph the damaged items in place before moving anything.
Also, it’s important to check with your broker before undertaking any clean up or repairs. They will obtain confirmation from the insurance company that this will not have an impact upon the claim if for instance an assessor will be coming to review the damage.
No matter what journey you’re embarking on, having the right guide can make all the difference. If you’re stepping into property investment, especially as a first-time landlord in Australia, you’ll need all the tips and tricks you can get. Get all the essential information from this comprehensive first-time landlord guide and set yourself up for success.
Author Bio
BMT Insurance work with some of Australia’s most experienced insurance providers to select the most suitable and cost-effective insurance for you. BMT Insurance have access to expert construction cost consultants that have inspected tens of thousands of properties each year, ensuring they have the necessary knowledge to calculate the replacement cost for your property and protect your investment.
Visit bmtinsure.com.au or call the BMT Insurance team on 1300 268 467 to discuss your coverage today.
