APIA Blog

RSS Feed

Suze Ferry: Common reasons why rental insurance claims get rejected

Friday, August 24, 2018

 

Rental properties need a different insurance policy compared to owner-occupied homes. There are additional risks you’ll want covered and there are certain requirements your insurer will want you to meet too. Contrary to popular belief, insurers don’t want to decline claims! The policy wording/schedule is a contract, between you and your insurer; the contract defines what is and isn’t covered and your understanding of this policy is essential.

 

Non-Disclosure and incorrect policy

If you take out a standard home and contents insurance cover for your rental property and fail to tell your insurance company that your property is occupied by tenants, your insurance company has a right to reject any claims related to the tenancy.

 

Lack of policy knowledge

Reviewing your policy documents (schedule and wording) for key benefits, limits and exclusions are essential to making informed claims. If you have specific concerns, don’t wait for an uninsured loss to occur – check with your insurer about the policy coverage.

 

Weak claim applications and how to avoid them

 

Insurers need to know the specifics of What happened, When, Where and Why. If you are unable to provide any part/s of this information, you will run the risk of having your claim delayed and, in some cases, declined. Take photos of damage, record dates and times if the loss is changing, keep the damage as minimal as possible. Find out about your insurer’s claim processes and requirements. Initio has lots of information online through the resource page  and How to Make a Claim.

 

 
Other helpful tips for savvy property investors

When you take out and renew your rental property insurance:

  • If you are not familiar with the location of your rental property, compile a list of local tradespeople in case you need them in the future.
  • Maintain a good relationship with tenants to allow ease of access to the property to make repairs.
  • Encourage your tenants to keep you posted of maintenance issues.
  • Inspect your rental property every 3 months and keep a photographed and written account of the condition of the property.

At claim time:

  • Be pro-active and keep the loss as small as possible.
  • Have tenancy documents readily available eg: tenancy agreement, tenant references, inspection reports.
Take a look at our latest video presentation on Why do rental insurance claims fall over and how you can avoid that happening to you if you would like to learn more about this subject. 

 

 


ABOUT THE AUTHOR

Suze Ferry

 

 

 

 

 

Recent Posts


Tags

buying lvr Jeff Bezos buying rules housing affordability tax LIM unitary plan DTI election 2017 Question and answer trademe warm up new zealand auckland council development Guest blog property value scotney williams ird mortgage market rent initio Holler nzpif watercare Kris Pedersen Mortgages and Insurance Investment tip subdivision structure trust renovation CCC property management heating wealth creation CoreLogic bond legal rental market interest rates short-term rental privacy Property (Relationships) Act management ring-fencing banking relationship ask an expert housing bubble bad tenant property cycle reserve bank airbnb Q&A Investor story investor How to speculator education buyer's agent building Landlording television p lab debt enforcement bond form rental wof rta reform HSWA property first home buying finance tenancy tribunal property maintenance partners principal and interest investment strategy gluckman report water bill tenant auckland beginner investor Standards New Zealand return government capital gain robert kiyosaki Sponsored post market maintenance tenancy issues landlord sale and purchase HHGA meth contamination Market report positive cash flow Must knows holiday house off the plan productivity rent negotiation ocr worksafe anz asbestos parry v inglis income sublease Must know advice sale and purchas rent arrears personal growth rta minor dwelling insulation financial advisers act interest only insurance warren buffett cash-flow tenancy services Editor's Choice house prices

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Keith Hay Homes logo Maintain To Profit logo The Insulation Warehouse logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited