There are (on average) 3800 house fires a year causing property damage in excess of $97 million.
With the number of house fires so high across the nation, this is a reminder for landlords to check that they have current insurance cover in the event of a fire, as well as ensuring that adequate smoke alarms are installed at the property in accordance with legislation requirements.
All it takes is for your tenant to turn their back and walk away while cooking in the kitchen, a small child finding a box of matches/lighter, an electrical fault or a spark in an appliance such as a dryer, to cause a fire that can lead to destruction of the property or serious smoke damage.
Even worse, the property could become un-tenantable, resulting in lost rental income.
How would a fire in your rental property affect you?
We strongly recommend that you ensure that your current insurance policy covers you for the damage caused by a fire from the tenant, as well as the loss of rental income while the property is being repaired.
If the fire is caused by the tenant and they are at fault, they will often be responsible for the insurance excess if one applies. However, a tenant renting a property is not going to be in a financial position to pay for the cost of large property repairs.
You also need to BE AWARE of second grade insurance covers provided by bank and financial institutions… they often do not give you the highest landlord cover and may have many item exclusions.
If you would like to discuss your current insurance cover, please feel welcome to contact our agency. We are unable to give insurance advice, however, if we are paying your insurance from rental monies collected, we can confirm your insurance is up-to-date and provide you with the insurer’s contact details.
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