Two real property-management examples that show why policy details matter
Owning an investment property can be rewarding, but it also exposes landlords to risks that ordinary building insurance may not fully cover. Cases managed by Centenary Approach demonstrate why landlords should not only have insurance, but should also understand exactly what their policy covers and excludes.
KEY MESSAGE
The cheapest or most familiar insurance policy is not always the most suitable policy for a rental property. Always check the Product Disclosure Statement (PDS), especially the sections covering tenant default, loss of rent, water damage and uninhabitable properties.
Case Study 1: Rainwater Damage and Loss of Rent
A unit under our management was heavily affected by rainwater entering through the roof. The water damaged part of the carpet and entered a smoke alarm. Because of the extent of the damage and the electrical safety concern, the property was temporarily not suitable for the tenant to occupy.
A claim was submitted through Terri Scheer landlord insurance for:
- Replacement of the damaged carpet
- Loss of rental income while the property was uninhabitable
Terrie Sheer landlord insurance covered for replacement of damaged carpet and losss of rental income.
WHY THIS MATTERS
Without appropriate landlord insurance, the owner may need to personally fund the replacement and absorb the rent lost while the property cannot be occupied.
Case Study 2: Rent Default Claims That Were Declined
Centenary Approach took over several properties from other agencies after landlords experienced avoidable losses caused by poor maintenance management, delayed action and insufficient communication.
Two of those landlords believed their insurance would protect them when tenants stopped paying rent. However, their claims were declined because of policy limitations:
| Policy type | What the landlord expected | Why the claim was declined |
|---|---|---|
| Policy A | Cover for rent owing after tenant default | The arrears were more than three weeks but had not exceeded the policy’s four-week threshold. |
| Policy B | Cover for rent owing after tenant default | The policy did not cover ordinary tenant default… |
IMPORTANT WARNING
A policy can be marketed as “landlord insurance” and still provide little or no cover for tenant default. Do not rely on the brand name or advertising alone. Read the PDS and confirm the waiting periods, excesses, claim limits and exclusions.
What Should Landlords Check?
Before purchasing or renewing landlord insurance, owners should confirm whether the policy provides suitable protection for:
- Tenant default and rent arrears
- Loss of rent following an insured event
- Malicious or intentional damage by tenants
- Accidental tenant damage
- Water, storm and rainwater damage
- Legal liability and legal expenses
- Reletting costs, vacancy periods and claim limits
- Policy excesses, waiting periods and exclusions
Why We Often Suggest a Specialist Landlord Insurer
Terri Scheer specialises in landlord insurance and is one option that many property investors consider. However, no policy is automatically right for every owner or property. Cover can change over time, and eligibility and claim outcomes always depend on the policy wording and the individual circumstances.
We recommend comparing policies carefully and obtaining advice directly from a licensed insurance professional. The most important step is to choose cover that matches the real risks of owning and renting an investment property—not simply the lowest premium.
OUR RECOMMENDATION
Review your landlord insurance now rather than waiting until a claim occurs. Confirm in writing whether tenant default, loss of rent and water damage are covered, and keep a current copy of your PDS.
Good Insurance Still Requires Good Property Management
Insurance is an important safety net, but it does not replace proactive property management. A good property manager helps reduce losses and supports insurance claims by:
- Monitoring rent payments and acting quickly on arrears
- Conducting regular routine inspections
- Responding promptly to water ingress and urgent maintenance
- Keeping detailed photos, invoices, reports and communication records
- Following the correct tenancy and notice procedures
- Providing insurers with clear and timely claim documentation
Protect Your Brisbane Investment Property
At Centenary Approach, we manage investment properties across Brisbane’s western suburbs, including Darra, Oxley, Sinnamon Park, Mount Ommaney, Jindalee, Seventeen Mile Rocks and surrounding areas. Our focus is proactive, hands-on management designed to protect both the property and the owner’s rental income.
We manage your property like we own it.
Contact Centenary Approach to discuss professional property management for your investment property.
Disclaimer: This article provides general information only and is not financial, legal or insurance advice. Policy terms, exclusions and claim decisions vary. Landlords should read the current PDS and seek advice from an appropriately licensed insurance professional before making a decision.
