Five claim examples that prove insurance is a wise investment

If you are fortunate, you may never make a claim against your insurance. However, accidents and unexpected disasters can, and often do, occur. When you are involved in the unpredictable, it is important to have protection for your investment.

The big bad insurance company is a popular villain. However, at EBM RentCover, our reputation and future success is built upon a foundation of integrity and honesty, and ultimately honouring appropriate claims submitted by clients.

To shine a light on the importance of landlord insurance, and to prove that insurers do pay out claims, we are sharing five real-life examples of claims that EBM RentCover has settled for clients. Without insurance, the below landlords would have had to foot the damage and loss bills on their own.

EBM RentCover claim examples

Example #1 – impact damage

A car lost control and travelled through the fence and lounge/kitchen walls of an EBM RentCover client. An assessor was appointed urgently after hours and the tenants had to vacate as the property was deemed uninhabitable. Repairs took place, however there were multiple work variations and market challenges which delayed progress.

Payout – EBM RentCover paid out a total of $51,416.31 for the damage + loss of rent while the tenant was unable to occupy the property throughout the repairs.

Example #2 – storm and hail damage

An EBM RentCover-insured property was hit by a severe hailstorm causing widespread damage to the air conditioning unit, render, letterbox, down pipes, drainage grids and whirlybird. In addition, there were hail dents across the roof and an accumulation of debris.

Payout – EBM RentCover paid out a total of $63,400.40 for the storm and hail damage.

Example #3 – pet damage

A tenant signed a lease agreement, not noting a dog on the lease. The tenant moved into the property in October and a routine inspection was conducted the following May. There was nothing out of the ordinary during the routine inspection, and zero signs of a dog living in the property. However, a little while after, neighbours complained of an odour originating from the unit – that is when the property manager discovered the dog. The tenant, after being confronted, decided to vacate the property leaving it in a poor and contaminated condition. In fact, even after the unit had been cleaned and acid washed, the odour from the unit remained unbearable. The dog urine and faeces had penetrated the fixtures, so many had to be replaced.

Payout – EBM RentCover engaged the services of a restorer and hygienist and paid out the limit (at the time) of $65,000 to cover malicious damage (which includes pet damage). NOTE: EBM RentCover now offers up to $70,000 cover for pet damage and offers cover for pets named and not named on the lease.

Example #4 – loss of rent + tenant damage

The tenant fell into arrears and the tenancy agreement was terminated due to non-payment of rent. The issue went to tribunal and the tenant was eventually evicted. The tenant left the property in an unruly condition with rubbish and contents scattered throughout. There was also damage to pool equipment and walls throughout the property.

Payout – the total damage paid was $8,048.80, $680 for the broken windows by the tenant (which comes under an insured event in our RentCover Platinum policy) and a total of $2,613.02 for loss of rent.

Example #5– loss of rent

The tenant was on a two-year lease agreement and fell into arrears during the COVID-19 pandemic. The tenant requested a rent reduction, which the agent and landlord was happy to discuss. However, to process the rent reduction, the agent needed additional information from the tenant and requested specific documentation be sent through. The tenant did not send through the required documents and fell out of contact with the agent. The agent then applied to tribunal to have the tenancy terminated (as the tenant continued to fall more and more behind in payments). Following tribunal, the tenant actually paid the outstanding arrears. But, unfortunately, the tenant then fell behind in rent again. The agent eventually got possession of the property.

Payout – EBM RentCover paid out a total of $19,479.30 for the loss of rent.

All claims are evaluated on a case-by-case basis and many different factors impact whether a claim is paid or not. The claim examples we have used were submitted under a valid policy and met all requirements of the policy terms and conditions. Click here to read an article which looks at five common issues that lead to claim denials. Or, if you need to make a claim, visit our online claims portal or call 1800 661 662.

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.