Inspect to validate insurance claims

Inspect to validate insurance claims 

A routine property inspection when a landlord takes out insurance cover could determine whether a future landlord insurance claim is paid and/or the amount that is paid.

 

When taking over management of a new property and/or at the time a landlord places insurance, a thorough inspection by the property manager should be undertaken to establish the condition of the property.

 

As part of the inspection you should also complete an inventory including all household items the landlords have left for the tenant to use. This may help substantiate any future insurance claims.

For most property managers this may be standard practice, but is sometimes something that is easily overlooked.

 

If a rental property is damaged and an inspection has not been carried out at the time insurance cover was placed – or the inspection has not been appropriately documented – it may be difficult to prove when the damage occurred.

 

This, in turn, could jeopardise a landlord insurance claim. For example, Terri Scheer Insurance was recently able to pay out on a claim because a property manager had conducted an inspection to coincide with the placement of insurance cover.

 

Only a few months after the inspection took place, the tenant fell behind on their rent and also damaged the property. Damage repair costs amounted to $5,000 plus an additional $3,500 in loss of rent over the repair period.

 

Notes from the property inspection showed that the property was in good condition when the landlord’s insurance cover was placed.

 

For information about landlord insurance, visit www.terrischeer.com.au or call 1800 804 016.

For more articles like this one checkout Rent Roll Growth

Posted via email from Grow Your Rent Roll

Its Not Rocket Science

Technorati Tags: Property Management

Tags: Property Management

Trackbacks/Pingbacks

  1. Jason Rose - 09. Nov, 2010

    RT @growarentroll : Inspect to validate insurance claims http://bit.ly/czomJG

Leave a Reply