Weatherproof your investment property now
The recent extreme weather events have proven the importance of weatherproofing your property to avoid costly repairs and water damage.
As experienced property managers, Key2 Realty has seen many investment properties affected by floods and storms.
Unfortunately, some landlords affected by the recent storms found that they did not have the appropriate insurance coverage and incurred the full cost of replacing the flooring. We urge landlords to find out what is covered under their current building insurance.
As of the 3rd March 2022, the Insurance Council of Australia (ICA) said insurers have received 60,163 claims related to the ongoing flooding in South-East Queensland and New South Wales. 46,235 of these claims are from Queensland and 13,928 are from New South Wales with figures expected to increase in the coming days. Eighty-three per cent of total claims relate to property, with the remainder motor vehicle.
Andrew Hall, CEO, Insurance Council of Australia said that personal safety should be the number one priority as this extreme weather event continues to impact communities along the east coast.
"Insurers are already assisting policy holders, and stand ready to provide on-the-ground assistance as soon as it is safe to do so," Andrew Hall said.
What do I do if my investment property is affected?
As a landlord, you should be aware of your tenant's rights in the case of floods and water damage. This information is available on the NSW Fair Trading website.
The Insurance Council of Australia recommend the following steps if your property has been impacted by flooding and storms:
- Start cleaning up but first take pictures or videos of damage to the property as evidence for your claim
- Remove water-damaged goods from the property that might pose a health risk, such as saturated carpets and soft furnishings
- Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible
- Store damaged or destroyed items somewhere safe
- Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer's permission in writing. Unauthorised work may not be covered by your policy
- Do not throw away goods that could be salvaged or repaired
Does landlord insurance cover my tenant's belongings?
No, landlord insurance does not cover the damage to a tenant's possessions.
Tenants should be encouraged to take out their own 'renters insurance' which will cover their personal belongings. Standard coverage varies between insurers, but the majority protect in cases such as fire damage, theft, storm damage or legal liability.
It is important for tenants to carefully read the Insurer's Product Disclosure Statement (PDS) to understand exactly what their policy covers and the optional inclusions that are available.
Key2 Realty's Recommendations
Whether you are a landlord or tenant, Key2 Realty recommends reviewing your insurance policy to confirm what is covered in the case of storm and water damage.
Landlords should keep on top of seemingly small maintenance issues to avoid disaster and costly repairs in the long term. Some things to consider to weatherproof your investment property:
- Clear your drains and gutters.
- Have your roof assessed for leaks.
- Check the property for signs of mould.
- Ensure the home is well insulated.
- Improve sub-floor ventilation.
- Seal large gaps in your windows and doors.
- Paint the exterior of your home.
- Protect timber windows.