Am I covered for loss of rent?
Yes your Rental Property, Holiday Home or ‘Own Home also Rented‘ insured with us includes loss of rent cover.
There are a few scenarios where loss of rent cover can arise.
Loss of Rent – Following Property Damage
The main cover is for loss of rent after physical damage. If your house is damaged (e.g. by a fire) and you can no longer rent it, we will pay for the rents you would otherwise have received while your house is being repaired.
If your property is damaged, we will pay:
a) 12 Months Loss of Rent, or up to the Loss of Rent sum insured you select
We provide $20,000 of annual loss of rent cover in your policy for free. You do not have to pay extra. You can then pay to increase this to $40,000 or $80,000.
We cover up to any unlimited weekly rent. However, your payments will stop once the loss of rent sum insured has been reached (e.g. $20k) or after 12 months of rent payments (which ever comes first).
Loss of rents payments will also stop once the property is able to be lived in or tenanted again. No additional excess applies to this cover.
Loss of Rent – Following Tenant Eviction or Vacating
As a landlord you are exposed to tenant risk. This can cause loss of rent without physical damage to your property.
Our policy includes a Landlord Protection extension. This covers the following:
a) Loss of rent following tenant eviction for non-payment of rent – 6 Weeks Cover
If your tenant stops paying rent you can evict them through the Tenancy Tribunal if they are over 21 days in rent arrears. We will cover your lost rent following the eviction for up to six weeks, or until you find a new tenant.
b) Loss of rent following tenant vacating without giving required notice – 6 Weeks Cover
Sometimes tenants might leave your property un-explained, and stop paying you rent. We will cover you for the six weeks of rent you would have received if they stayed, or until you find a new tenant (whichever is first).
No excess applies to this cover. If you have received rent in advance, this is subtracted from your loss of rent payments.
You must meet the Landlord’s Obligations specified in our landlord insurance policy to have cover for loss of rent following a tenant eviction or vacation. The landlord obligations apply to all claims under the ‘Landlord Protection’ cover.
You do not need to meet these obligation’s if loss of rent has come about from a non-tenancy loss such as a flood or fire.
Loss of Rent – Short Term Accommodation (AirBnb, BookaBach)
We also cover rent following physical damage to short term rentals such as an Airbnb holiday home.
a) 12 Months Loss of Rent, up to the Loss of Rent sum insured you select
Again $20,000 of cover is included for free, with options to pay extra to increase this to $40,000 or $80,000.
Weekly rents you receive on your short term accommodation can fluctuate each week. If this is the case we will make a calculation to estimate the lost rent.
This takes account of expected bookings, and future actual bookings that you need to cancel. If required we may also account for the rents in the same period last year, or use short-stay occupancy rates in your particular region.
We are unlike other insurers, who will often only cover actual cancelled bookings, and not expected bookings.
Tenant eviction or vacation cover does not apply to short term accommodation. Airbnb or BookaBach guests do not have a formal tenancy agreement so this cover can not apply.