Landlord insurance claims on the rise as rent soars
Landlord claims for lost rent and property damage are expected to rise in the next six months as rents continue to rise in the major cities.
Research from landlord insurance specialists Terri Scheer Insurance Brokers – a Vero subsidiary – shows that in 59% of insurance claims by landlords, bonds are not enough to cover the shortfall.
Terri Scheer Insurance Services GM Carolyn Majda told insuranceNEWS.com.au the situation is only likely to worsen.
“People will get to a point where there is no money and something has to give,” she said. “Often that is rent. When tenants decide to do a runner they do damage as well.”
Ms Majda says the average claim is about $2500 but is increasing. She says the highest claims involving severe property damage can reach $80,000 to $90,000.
Research from landlord insurance specialists Terri Scheer Insurance Brokers – a Vero subsidiary – shows that in 59% of insurance claims by landlords, bonds are not enough to cover the shortfall.
Terri Scheer Insurance Services GM Carolyn Majda told insuranceNEWS.com.au the situation is only likely to worsen.
“People will get to a point where there is no money and something has to give,” she said. “Often that is rent. When tenants decide to do a runner they do damage as well.”
Ms Majda says the average claim is about $2500 but is increasing. She says the highest claims involving severe property damage can reach $80,000 to $90,000.