Victoria has extended a ban on evictions and rental increases until the end of the year in a move that has implications for landlord cover that has been adjusted due to the COVID-19 outbreak.

Major insurers earlier this year temporarily removed a requirement for landlord customers to provide an eviction notice when making a claim for loss of rent, while coming under pressure to make further concessions.

The Morrison Government in March had announced states and territories would put in a six-month moratorium on evictions as part of their response to the coronavirus pandemic.

Victoria’s extension announced today applies to both residential and commercial tenancies through to December 31, except in specific circumstances, as the state continues to battle its second wave of infections.

“No one should have to be worried about losing a roof over their head right now,” Premier Daniel Andrews said.

“This will give tenants certainty and security that they won’t lose their home or business while we fight this deadly pandemic.”

In the past four months, close to 26,000 agreements for reduced rent have been registered with Consumer Affairs Victoria, with advice and dispute resolution services accessed more than 80,000 times.

The Insurance Council of Australia (ICA) is reviewing the Government’s announcement, spokesman Campbell Fuller told insuranceNEWS.com.au.

ICA notes that the building, contents and liability protection provided by landlords insurance is not affected when the landlord and tenant agree on rent reductions or deferrals.

Insurers are also treating landlord claims on an individual basis, and in cases where a residential tenant is suffering hardship due to COVID-19 and cannot fulfil their obligations, insurers will not pursue the tenant for unpaid rent.

“New landlord insurance policies are available from some insurers with an adjustment to the tenant default component of the policy,” ICA says.

“These policy adjustments are occurring due to the financial uncertainty created by the economic downturn, and the various government announcements about tenant protection measures and the impact on landlords, tenants and insurers.”