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Is my rental property covered for Methamphetamine Contamination?

For rental properties and holiday homes the initio landlord policy provides cover for property damage caused by the use of methamphetamine, and also the manufacture of methamphetamine.
The limit of cover for damage arising from both meth manufacture and for meth consumption is per your policy schedule – which as standard is $30,000, with a $2,500 excess.

Any loss of rent resulting from the meth contamination and related cleanup is also covered by the policy, up to the amount of rents cover you have selected.  This cover is in addition to the $30,000 of cover for the meth damage.

To receive the benefit of the meth cover you will need to show that the property is being managed inline with the landlord obligations.  The meth cover and the the landlord obligations are detailed in the policy.

In summary the landlord obligations are:

  • complete an internal and external inspection of the home at a minimum of 3-monthly intervals and the relevant residential dwelling upon every change of tenant(s).
  • keep photographs and a written record of the outcome of each inspection, and provide to us a copy of these if we request it.
  • monitor rents on a weekly basis with written notification being sent to the tenant(s) whenever rent is 14 days in arrears, together with a personal visit to determine if the tenant(s) remains in residence.
  • make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 if:
    • the rent is 21 days in arrears, or
    • you become aware of any illegal activity by the occupant(s) at the home, or
    •  intentional damage to the home is caused by the occupant(s).

And for any new tenancies that commence after 1 January 2019 these will be subject to the new tenant vetting requirements. These are:

  • exercise reasonable care in the selection of the tenant(s) by at least obtaining satisfactory identifcation and written or verbal references for each adult tenant and when a reasonable landlord would consider it appropriate also check their credit and Tenancy Tribunal history.
  • keep written records of the pre-tenancy checks conducted for each adult tenant.
  • collect a total of 3 weeks’ rent in any combination of rent in advance and bond that will be registered with Tenancy Services.

IMPORTANT:  This is a summary of the meth cover and landlord obligations.  You must refer to the policy wording and your schedule for full details of the cover, the conditions, and exclusions.