Insurance Policy Response on Residential Rental Properties.
This is a general summary from Insurance Companies in New Zealand on Residential Rental Properties.
The main stipulations are:
At the beginning of a Tenancy produce a negative drug test on the Property and proof of Smoke Alarm installation.
Exercise due care in the selection of Tenants including obtaining satisfactory written and verbal references in all cases.
You must notify Tenants in writing if rent in arrears by more than seven days; personally deliver second letter if rent in arrears by 14 days and ascertain if still in residence; apply to Tenancy Tribunal for Termination Order if rent in arrears by 21 days. Rent must be collected in advance; collect at least two weeks Bond (we always recommend four weeks); documented Inspections at least every three months.
The Insurance will only be paid where the level of chemical contamination exceeds the guideline of acceptable values issued by the Ministry of Health in its Guidelines for the Remediation of Clandestine Methamphetamine Laboratory Sites. They will only pay for chemical decontamination to the acceptable levels outlined in the Guidelines.
These Companies provided their Cover Policies,
- AA Landlord Content Cover up to $30,000 – as per above
- AMI up to $25,000 – as per above
- BNZ (NZI) up to $25,000 – as per above
- Fintel (Tower) – Totally excluded
- FMG – Totally excluded
- Medical Assurance Society fully covered – as per above
- NZI (Echelon) up to $25,000 – as per above
- NZ Prop Investors Insurance (Lumley Ins) up to $25,000 – as per above
- State Insurance up to $25,000 – as per above
- Tower up to $30,000 – as per above
- Trade Me (Tower) up to $30,000 – as per above
- Youi – excludes Drug Contamination
- Vero – as per above
If you would like to see the full report email dan@taurangarentals.co.nz