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Insurance War Stories Landlord Pro Plus August 2006
Readers will have likely seen the sad story of  landlord insurance cover on the “Fair Go” programme. Such events are not as uncommon as you might think.

Recently an investor purchased a dwelling for rental purposes. The investor telephoned a broker and asked for a landlord cover. The broker arranged a policy with optional additional benefits and the heading “landlord extension” to go with the basic household cover.  The investor rented it to an applicant who committed fraud to obtain possession. When the fraud was uncovered the investor obtained termination and possession and found to his horror that the tenant had stolen all the fixtures and fittings worth over $20,000.  No problem he had arranged landlord extension cover.

Unfortunately the policy had an exclusion that said that if the chattels were stolen by the tenant, they were not covered.

Insurance policies are not all equal. Investors must check that they are purchasing insurance that meets their needs. The first lesson for investors is, insurance policies are an important part of your financial success, buy a good one and that means actually reading what is covered and more importantly, what is excluded.       

Scotney Williams L.L.B
Consultant  to
Landlord Pro Plus Insurance