$257,000 paid to landlord after property damage

One investor's Western Australia Kalgoorlie property quickly saw nightmare conditions, after fire damage, graffiti and squatters taking over who created more damage.

The end result was a landlord insurance $257,000 pay out over the course of two years.

rate-nov-26-one

rate-nov-26-two

The damage, visible in the pictures above, was started by an unfortunate chain of events. The owner's property was damaged by fire from a neighbouring home, prompting the first claim to RentCover. Then, as they awaited building commencement, intruders spraypainted the undamaged areas of the property. Squatters then arrived and further damaged wall panels.

Three separate claims ensued to achieve the pay out.

EBM Insurance Brokers RentCover general manager, Sharon Fox-Slater, said that the total amount also included funds for lost rent and for a security firm to protect against further squatters.

“Landlord insurance premiums are mostly in the hundreds of dollars but offer huge relief by covering costs in the hundreds of thousands of dollars, and even the millions, for liability. A major incident could be enough to force many uninsured property investors to sell, while a lawsuit could wipe them out financially,” said Fox-Slater.

One in five landlords currently do not have landlord insurance.

Fox-Slater notes that claims have ranged over the past year from accidental damage, to large-scale illegal drug laboratories requiring forensic clean-ups, and costing in excess of $40,000.

The largest claim was for a total rebuild at a cost of $500,000 as a result of a fire.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?