Just wondering if anyone can enlighten me on Landlord Insurance? I took out landlord insurance for my IP which included loss of rent through default. My tenant then did a runner owing $2500 in rent, I then went through the court systems and was awarded this amount(tenant was a no show). St George Insurance now say because I did not send the tenant a letter as per Tenancy Act they will not pay out the figure. The problem I had was that the tenant did a runner and unfortunately did not leave a forwarding adress. Now surely if the courts issued an order for these monies to be paid to me then that would be good enough for the insurance company who now say that their decision is final. Can anyone tell me if their is any kind of appeals tribunal in Western Australia that handles these kind of claims.
Thanx in advance for any responses.
Fitz
<<<<St George Insurance now say because I did not send the tenant a letter as per Tenancy Act they will not pay out the figure. >>>>>
What does that mean – have you discussed with your property manager? What letter? Each state is different. Get more information from the insurance company. Maybe if your prepared to pay money to chase the debt ask a solicitor what they are referring too.
I have landlord insurance – but i dont have cover for lost rent. In my 7 yrs experience with 3-4 rental properties I have only ever lost a month to six weeks rent. And that was only because they went to Qld.
I always have property managers and ensure I get a monthly cheque. If not my property managers are on the phone to the tenants. If the tenant continues not to pay they are told they may need to go to the tribunal and its made clear to the tenants it will be difficult for them to rent elsewhere if they have a default against their rental record.
Good luck with it. You gotta decide if its worth chasing or just put it down to experience.
Did you have a PM ?
or were you managing yourself.., it’s a fair *wack* of $’s to lose…
As for the letter, if you had a PM then take it up with them, also the factor of leaving the rent to be so overdue..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Fitz,
I tend to agree with your position – the courts have ruled against the tenant and as such it would appear (to my sense of fairness anyway) that your insurance company is ducking and weaving.
Suggest a call to your Ministry of Fair Trading (or similar in your state) and talk to them. You may also find some answers at the following website http://www.complaintline.com.au
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Yes call the number Dereck suggested, but perhpas they are advising that the rent defualt letter should have been sent much earlier, therefore you haven’t taken (or your PM) hasn’t taken the necessary steps soon enough ie: once they were 14 days overdue the first letter of default should have been sent etc. We’re all the necessary steps taken straightaway?
Hope you can sort this out for your sake, sorry can’t be of much help, but do let us know how it turns out. ‘
Good luck
PKHi Fitz – ring the Office of Fair Trading (sometimes called Consumer Affairs) in your State, they will at least give you the contact details of the Insurance Industry Ombudsman who invesstigates all complaints re insurance companies – they are usually free and their rulings are final and binding.
If you want revenge and want to stuff up your tenant – take your court judgment to the Credit Reference Association – sometimes called Baycorp Advantage or Credit Advantage – use it as evidence of the $2,500.00 debt and register it against their name in their credit rating – that will stuff them up credit-wise for the next 5-7 years!
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