Do you have a property investment such as an investment flat, unit, apartment or
house leased or rented to tenants? Have you ensured it’s properly insured? As one
of its many insurance offerings, CGU provides a product for landlord residential
property insurance.

CGU covers your accidental loss or damage to the building and contents of your
rental property, as well as insuring you for a whole series of specified events. In
addition, you can choose to add a range of additional cover options including loss of
rent, rent default and theft by a tenant and legal liability.

Can CGU’s insurance cover troublesome rental tenants?

A CGU spokesperson says, “With CGU landlords residential property insurance you
don’t need to worry about troublesome tenants. Your policy will cover you for a range
of deliberate or intentional acts by a tenant, or vandalism or malicious acts.”

You can also add rent default and theft by a tenant to your cover so that if your
tenant defaults on rent, leaves the building before the end of the rental period or is
legally evicted, CGU will provide up to $5,000 for lost rent until the property is re-let.

Is fire, storm, rainwater, wind, landslide, subsidence covered?
CGU says damage from many different events to your rental property is covered
under the insurance policy. However, CGU says this is subject to various conditions.

“Say, for example, your rental property is completely destroyed by fire and you have
chosen the optional replacement benefit, you will be covered for the cost of rebuilding
the property to a new condition, up to the sum insured.”

“In addition, CGU will also pay to demolish and remove any debris, the cost of
employing an architect or surveyor, and any legal fees that may arise from the
rebuilding process. If you decide not to rebuild, they will also pay any legal costs
involved in the discharge of any mortgage you have left owing.”

“If you are unable to rebuild the property to the same size because of changes
to government legislation or local authority bylaws, CGU will not only pay the
cost of rebuilding but also the difference between the actual rebuilding cost and
the estimated cost of building a structure of the original floor level, up to the sum
insured.”

What additional insurance covers are offered?

You can add the following extras to your rental property insurance:

• Liability cover – from $5 million to $20 million.

• Loss of rent – for up to 12 months and in total up to your sum insured, or up
to $1000 on the death of a sole tenant, or if your rental agreement is legally
terminated on the grounds of hardship on behalf of the tenant.

• Rent default and theft by a tenant – up to $5,000, less any bond money.
• Strata title mortgagee protection up to the sum insured
• Workers’ compensation – for people doing work around your rental property
such as cleaning and gardening, in states where legislation permits.
Please note Quotesonline Insurance News is an information service provided by third parties Insure 247 Australia doesn’t warrants the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service

By | 2016-04-13T05:09:20+00:00 August 23rd, 2011|Insurance Information, Insurance News|
 
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