Understanding landlord's insurance during the coronavirus pandemic

The whole nation is in uncharted territory at the moment as to what to expect during the coronavirus (COVID-19) pandemic, and this is no different for the real estate industry.

As a landlord you will be hearing about changes occurring due to announcements made by the Prime Minister Scott Morrison.

Well since then the State Government has taken control of matters relating to Western Australia and REIWA is anticipating an announcement very shortly.

In the meantime, here is some background information to help you understand what the issues are and how you can be prepared.

Ban on evictions

One thing that will occur is a moratorium on evictions which means for a six-month period, landlords will not be allowed to evict tenants who are experiencing in cases of serve financial hardship related to coronavirus.

This is not a moratorium on paying rent and tenants have been advised by the Prime Minister and State Governments to continue paying their rent if they can afford to.

If a tenant stops paying their rent, this financial burden is ultimately left up to the landlord and is something REIWA is quite vocal about fixing.

Will landlord insurance cover this?

With many tenants unable to pay their rent due to losing their job because of coronavirus, you might be asking if landlords insurance covers your loss of income.

While each landlord insurance cover providers are all different, the answer is usually yes, if the landlord does not agree to a lower rent.

However, it is best to check with your insurer as to what their terms and conditions are relating to this.

Will insurers change their terms and conditions?

We are hoping that landlord insurers will relax their processes and support claims where there is an agreement to reduce rents.

Until then it is best to read through your terms and conditions, or speak directly with insurer to see what they are able to offer you.

What is REIWA doing?

Across our advocacy efforts, REIWA has asked major insurers to help landlords during this time.

In addition, we have reached out to them with a range of questions to ensure we can equip landlords and property managers with as much information as possible.

View the letter sent to major landlord insurance cover providers.

More information

View a detailed response from EBM RentCover Managing Director Sharon Fox-Slater.

In addition, Aon, who negotiate with insurers to provide tailored, industry-specific business insurance policies, have also collated a list of landlord FAQs which may assist with any questions you have.

For more information on REIWA's advocacy efforts, visit our advocacy page.