Business Interruption – Loss of rents & standing charges
Public & Statutory liability cover
Many landlords only take a 12-month indemnity period on their loss of rents policy.
Should the building need to be demolished this may not be long enough to demolish the old building, design, consent and construct the new one. This is especially true if the cause was a major event like an earthquake, where professionals & tradesmen will be in short supply.
Many landlords forget to include the standing charges (Body Corporate fees, rates, insurance etc) in their business interruption policy, if the building is badly damaged the lease normally terminates meaning there is no tenant to covers these costs.
P damage – P damage happens in commercial buildings the same as in residential homes, our policies can include P damage.
It’s important that landlords get an insurance valuation done every 2 years as building costs can increase quickly and otherwise you may not have enough cover to replace your building.
Domestic Landlords (Rental Home, AirBnB, Bookabach etc.)
Pro-Sure Insurance is a strategic business partner providing a range of insurance and property management products and services as part of The Insurance Group.
Landlord Insurance – We have comprehensive cover for landlords including:
Gradual Damage – up to $5,000; some insurers don’t provide cover; others limit cover to $1,000-$1,500 Malicious Damage – up to $30,000 with an excess from $500; some insurers don’t provide this cover; others limit cover to $1,500 or have large excesses.
P Damage – up to $30,000 with an excess from $500; some insurers don’t provide this cover; others limit cover to $1,500 or have a $2,500 excess.
Loss of rents – some insures only cover loss of rents as a result of a fire; we cover loss of rents due to malicious damage, P-damage, tenant abandonment as well as fire and other property damage.
In the NZ market there are 3 basic types of cover
• Restricted Full Cover – This covers the dwelling and notes that the home is used as a rental, but removes much of the standard cover, such as accidental damage, gradual damage and does not include cover for malicious damage, P and other landlord risks.
• Full Cover – This covers the dwelling and includes cover for landlord risks such as malicious damage. There is a big range in the breadth and amount of cover provided by different insurers. For example: do they provide gradual damage cover, what do they define as gradual damage (some only include damage caused by hidden leaking waste water pipes, while better policies include damage caused by leaking hidden water supply pipes as well) and what is the maximum amount they will pay out; for some it is only $1,000.
• Top-up Cover – where you have 2 insurance policies (quite often with different insurers), it consists of a base policy to cover the dwelling for non-landlord risks like fire & storm damage, and a Top-up policy which covers the landlord risks like malicious damage. This can cause problems at claim time where there is a gap or conflict between the 2 policies.
Top-up Cover is the only option for a property which is part of a body corporate, where the body corporate insures the building and the Top-up Policy provides the Landlord Cover.
We prefer to provide Full cover policies for homes and Top-up policies for body corporates only.
Short term rentals
Many Insurer will not cover short term rentals like Air BnB and Book a Batch or impose high premiums and Excesses.
Most property owners do not know that using a property (or part of it) for short term rental is a material fact and an insurer could decline a claim if they are not aware of the rental activity.
We can provide comprehensive cover for your short-term rental including:
P damage – This is a growing problem for owners of short term rentals
Loss of rents