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3 monthly property inspections - whether you want them or not!

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  • 3 monthly property inspections - whether you want them or not!

    We're new property investors and I was surprised to see in the house insurance policy that we, as landlords, have some special obligations.

    We have to select our tenant carefully, including obtaining a reference
    and
    We have to conduct 3 monthly property inspections and keep a record of each inspection.

    The reason I'm surprised is because when I rang and arranged insurance over the phone there was no mention of this, and when I specifically asked if there was anything extra I needed to know or do, due to it being an investment property, the answer was no.

    Be aware, check your policy wording (this was Westpac home insurance - and I found it written in the policy booklet) as I imagine they could decline a claim if you hadn't met these conditions, even if you didn't know about them!

  • #2
    Very important. Take lots of pictures also.
    Free online Property Investment Course from iFindProperty, a residential investment property agency.

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    • #3
      Thanks Nick G. Sneaky old insurance company eh?

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      • #4
        Yip, there are more changes coming too with how they treat P cover. Insurance companies are very, very concerned about P.
        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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        • #5
          Yes we were worried about it too. We did a D.I.Y P screening test on the house before we bought it. Took photos of the test results as evidence for insurance purposes since it wasn't an independent test.

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          • #6
            I insure through Vero who offer (for now) uncapped P cover (it costs more).
            Free online Property Investment Course from iFindProperty, a residential investment property agency.

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            • #7
              If you used a PM they would have told you this, it is a requirement.

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              • #8
                Hi Nic

                That is very common policy to be furnished in for insurance.

                You do want to make sure you have a sound insurance policy in place to make sure your covered for 'P', tenant damage and rent arrears.

                Hope this helps
                Fraser Wilkinson
                www.managemyrental.co.nz
                Wellington / Lower Hutt / Upper Hutt / Porirua

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                • #9
                  Good on you for reading the obligations portion of the fine print - if only more private landlords were as vigilant. On the one hand it seems onerous & time-consuming, but on the other hand, it is, after all, what (we) property managers do daily. The good ones (& I mean private landlords as well as PMs) know what they're doing & pick up on issues before they become insurance claims.
                  And yes, if the insurers can wiggle out of a claim based on you not supplying a full 3 monthly inspection report, they quite possibly will.
                  For those who don't like to 'intrude' on their tenants every 3 months, telling them it's an 'insurance obligation' certainly smooths the way.

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