When wild weather strikes without warning, it’s easy to find yourself sinking under the weight of unforeseen costs, liabilities and things to fix.
Especially in the aftermath of perpetual rain and flood damage… when rethinking your home insurance can quickly become an expensive issue.
It’s a time when insurers are usually overloaded with disaster claims, premiums can start to rise, and both homeowners and tenants are often faced with a decision: to pursue an insurance policy – or to just foot the bill and move on.
But before taking any step to restore a leaking roof, electrical fault, burst pipe or saturated carpet, it’s vital to know what you’re actually responsible (and legally covered!) for – we’ve laid it all out below.
Renters
While disaster cover differs from insurer to insurer, there’s one fact that doesn’t; in NSW, tenants are responsible for their personal belongings or ‘contents’ – and landlords are typically responsible for repairs to the property (that they are made aware of).
In the event of a storm or flood, tenants should contact their property manager to have the damage assessed when it is safe to do so, and to allow the property manager to determine if the rented property is habitable.
From there, tenants can usually choose whether to stay in the property or seek temporary accommodation while repairs are being undertaken, such as having a ceiling fixed. But of course, this depends on the extent of the damage, if the repairs are urgent, and the terms of the lease agreement.
So when would a tenant require insurance?
A common assumption is to think that landlords are responsible for a tenant’s valuables and possessions… but this simply isn’t the case. This is where contents insurance can reduce much of the financial strain of having valuables lost, stolen or damaged in a disaster – notably, which are not required to be reimbursed by a landlord.
While policies vary and some cover more than others, in a nutshell, contents insurance will typically cover for:
- Furniture
- Clothing and shoes
- Electronic devices
- Goods and appliances
- Medical equipment
Another thing to remember is that tenants only require insurance for contents, as the home is covered by the landlord in non-strata properties (or by building fees in a strata residence).
Landlords + owner occupiers
Whether you’re leasing out a property or living in it, knowing what you’re covered for in the event of a flood or other disaster could save you thousands.
Landlords have the option of taking out landlord insurance, for damage to their property, loss of rent, as well as building insurance (for a non-strata property).
Like landlords, homeowners who occupy their property and would like cover for unexpected damages should also consider building insurance, but may require combined home and contents to cover both repairs to the building and belongings in an unforeseen event.
The bottom line
In every case, check what you are covered for by contacting the insurer or visiting their website. As many insurance companies have updated (and in some instances, reduced) what they cover for, it’s a good idea to check before the next major event occurs!
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
