Primary service : Property Management
It’s an investor’s worst nightmare: being told that your real estate investment has been badly damaged through flood, fire or some other incident.
But it doesn’t have to be.
One CPS client’s real estate investment – an apartment in a 1970s block in Coogee – was flooded with water thanks to a careless tenant who fell asleep while running a bath. Not only did that tenant’s apartment flood, but the water seeped through into the apartment below and damaged the ceiling, paint, carpets and possessions downstairs, too.
Without landlord insurance, our client would have been in a sticky situation. Fortunately, we had recommended a landlord insurance policy with EBM – which the client took on.
The cost of not having landlord insurance
In a multiresidential dwelling, landlord insurance is vital.
Consider the example cited above. The downstairs apartment was completely uninsured – no landlord insurance for the owner, and no personal contents insurance for the tenant.
To recoup their costs, the tenant and owner of the apartment below had to sue the upstairs tenant for damages – a costly, cumbersome and risky process. While they engaged a solicitor to seek reimbursement, they had to pay for repairs and rectification themselves.
A happy CPS client
Thanks to landlord insurance, our client was able to repair the water damage to his unit quickly by making a claim on his policy. Apart from the excess on his policy, which is tax deductible, he wasn’t out of pocket at all.
Repairs to his real estate investment were made quickly and without fuss, and he was able to navigate this unique damages situation smoothly – while the other, uninsured parties had to endure a lengthy and costly legal process.
He said: “Thanks, CPS for encouraging me to take out landlord insurance. I never thought I would have encountered this circumstance – I’m glad my risk was effectively managed.”