Landlord insurance: what constitutes a rental default in a pandemic?
It's no doubt a confusing time about what support is out there for for landlords in this pandemic, especially when it comes to insurance. Up until recently, The Insurance Council of Australia website has sidestepped the question of what constitutes as a rental default in the current crisis.
The Real Estate Institute of Australia has recently provided some clarification on how you should approach this problem if you find yourself in this conundrum. While there is no easy solution, larger insurers tend to approach these on a case-by-case basis.
"So for landlords the best advice is to contact their insurer and get clear guidance on what they should do," said REIA president, Adrian Kelly.
The ICA also supports the state governments encouragement of renegotiating rental agreements, and to ensure you inform your insurance provider. However, in doing so, it will not likely be covered as a a rental default.
If you have any concerns about your investment property, your Coronis Property Manager would be happy to discuss what we can do to help you make an informed decision.