Monash and Knox see highest number of landlord insurance claims: RACV

Malicious damage and rental defaults are among the top claims lodged by investors with landlord's insurance across the board, according to RACV Insurance.

Landlord insurance claims were highest in the Council areas of Monash and Knox, where 60 and 44 claims respectively were lodged by those with landlord insurance, said RACV manager personal insurance, Phil James. Maroondah, Manningham, Yarra Ranges, Boroondara and Whitehorse followed closely for claims.

“The average claim cost more than $7,000 in Monash, demonstrating the financial impact property damage or lost rental income can have,” said James.

State-wide, 2,234 claims were lodged with RACV between July 1 2012 and June 30 2013, with a pay out of almost $10.6 million in total.

“Last financial year RACV Insurance paid out an average of $4,323 for 380 claims for malicious damage and an average of $3,341 for 370 incidents of tenants defaulting on rental payments but remaining in the property,” he said.

“RACV Insurance also paid out an average of $3,087 for 213 claims for renters defaulting on rent when vacating the property without notice."

Other claims included storm damage, water damage, burglary and fire. Landlords should consider both tenant damage and natural disaster damage when looking into insurance coverage.

Source: RACV Insurance

jduke@propertyobserver.com.au