Encounter bad tenants, a landlord lost $47,000! Being a landlord in New Zealand is very important!
19 Jul 2021
Renting is common in New Zealand. New Zealand’s rental population is close to 2 million, or 40 per cent of the population, according to the latest figures.
New Zealand’s rental regulations have long been based on the principle of protecting tenants as a “vulnerable group”, focusing on regulating landlord behaviour and treating tenants with ease. The Residential Rental Act Amendment Act, introduced in 2020, has been described as the most tenant-friendly bill in history. As a result, landlords have become “vulnerable groups”.
Right now, a landlord in Oakland has been subjected to vandalism by tenants:
According to local media Stuff, the man, named Clifton De Chelin, rented a house in Hibiscus Coast, Oakland, through a rental company.
Landlords would like tenants to pay on time, clean up when they leave, everyone gathered well. As a result, when the tenant left, the house was severely damaged: every wall was deliberately pierced, broken or even moved. The solid wood floor was full of large holes, pipes and wires were extensively damaged, doors and windows were smashed, curtains were cut off, stoves were removed and thrown into the backyard.
(Image from the Internet, just a sign)
Fortunately, the house is small, the overall repair cost is about $47,000, but during the repair period, the house is certainly not available for rent. The rental company appealed on behalf of the landlord to the rental court, which awarded the tenant $47,096.29 in damages for construction repairs and waste disposal.
Whether the tenant can compensate is still unknown, but it is certain that the landlord must have suffered heavy losses and wanted to cry without tears.
Encountering bad tenants is a lingering nightmare for many landlords, what if you’re unlucky?
In fact, there is an insurance that can effectively deal with this risk, which is landlord insurance.
Today YG Insurance will introduce you to this insurance that can send charcoal to the landlord in the snow.
Landlord insurance coverage focus
The purpose of landlord insurance is to protect the interests of landlords. The focus of its protection is on rental losses and losses caused by tenant vandalism, including:
- The loss of the house caused by the malicious destruction and theft of the rental house by the tenant;
- The rent loss caused by the tenant’s malicious destruction and theft of the rental house, which leads to the loss of the landlord’s rent;
- rent losses caused by tenants moving out of rented houses without notice;
- Rent losses resulting from the expulsion of tenants without paying rent (the rental court requires tenants to leave and terminate the lease);
- Rental housing due to public facilities construction or unexpected circumstances (e.g. road repair, cable repair, etc.) resulting in indicability to stay, resulting in rental losses;
- damage caused by accident or personal injury caused by accident in a rental house;
The difference between landlord insurance and home insurance
In New Zealand, rental property insurance is usually purchased. So what’s the difference between landlord insurance and home insurance?
Simply put, rental home insurance focuses on the loss of a home, including:
- During the rental period, the tenant caused sudden or unexpected losses, such as the dishwasher leakage
- During the rental period, the house itself is secretly accidentally damaged, such as water pipe leakage;
- During the rental period, the tenant’s illegal act caused by the loss of housing, such as crystal meth pollution;
When these accidents occur, rental housing insurance can provide housing repair or reconstruction funds.
It is worth noting that individual housing insurance, without additional landlord protection, does not cover the landlord’s rental losses and damage to the house.
Therefore, for landlords, landlord insurance is not an additional supplement to housing insurance, but a necessary protection. Home insurance and landlord insurance can be said to be the landlord’s left arm.
How landlord insurance protects landlords
We go back to this actual case at the beginning of this article, where, according to NZHerald, the landlord did not buy insurance for malicious damage to the tenant, so the cost of repairing the house and the loss of rent during the period could only be borne by himself.
Suppose the landlord had previously purchased AON Stylecover home insurance through YG insurance with the option of landlord insurance attached; the landlord could immediately be reimbursed $30,000 for the repair of the house;
So your landlord’s biggest concern is: How much does it cost to be a happy landlord in New Zealand?
Suppose the landlord has a rental house on Auckland’s North Shore with an indoor area of 170 square metres and a weekly rent of $650 and a house insurance policy of $500,000.
If the landlord has the option to rent out the home and attach the landlord’s insurance, the annual premium is $1,600, or about $144 per month.
YG Insurance reminds you that each insurance company has different coverage terms and payout amounts, please consult a local professional insurance consultant before purchasing.
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