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Four claim examples that prove insurance is a wise investment
Case studies

Four claim examples that prove insurance is a wise investment

04 Feb 2022 4 mins read

If you are fortunate, you may never make a claim against your insurance. However, accidents and unexpected disasters can, and often do, occur. When you are involved in the unpredictable, it is important to have protection for your investment.

The big bad insurance company is a popular villain. However, at EBM RentCover, our reputation and future success is built upon a foundation of integrity and honesty (and ultimately honouring appropriate claims submitted by clients).

To shine a light on the importance of landlord insurance, and to prove that insurers really do pay out claims, we are sharing four real-life examples of recent claims that EBM RentCover has settled for clients. Without insurance, the below landlords would have had to foot the damage and loss bills on their own.

EBM RentCover claim examples

Example #1 – impact damage

A car lost control and travelled through the fence and lounge/kitchen walls of an EBM RentCover client. An assessor was appointed urgently after hours and the tenants had to vacate as the property was deemed uninhabitable. Repairs took place and there were multiple work variations and challenges due to COVID-19 lockdowns. However, the claim was finalised in September 2021.

Payout – EBM RentCover paid out a total of $51,416.31 for the damage + loss of rent while the tenant was unable to occupy the property throughout the repairs.

Example #2 – storm and hail damage

An EBM RentCover-insured property was hit by a severe hailstorm causing widespread damage to the air conditioning unit, render, letterbox, down pipes, drainage grids and whirlybird. In addition, there were hail dents across the roof and an accumulation of debris.

Payout – EBM RentCover paid out a total of $63,400.40 for the storm and hail damage.

Example #3 – loss of rent + tenant damage

The tenant fell into arrears and the tenancy agreement was terminated due to non-payment of rent. The tenant took the issue to tribunal; however, the tenant was eventually evicted. The tenant left the property in an unruly condition with rubbish and contents scattered throughout. There was also damage to pool equipment and walls throughout the property.

Payout – EBM RentCover paid out $8,048.80 for damage, $680 for the broken windows by the tenant (which comes under an insured event in EBM RentCover policies) and a total of $2,613.02 for loss of rent.

Example #4 – loss of rent

The tenant was on a two-year lease agreement and fell into arrears during the COVID-19 pandemic. The tenant requested a rent reduction, which the agent and landlord was happy to discuss. However, to process the rent reduction, the agent needed additional information from the tenant and requested specific documentation be sent through. The tenant did not send through the required documents and fell out of contact with the agent. The agent then applied to tribunal to have the tenancy terminated (as the tenant continued to fall more and more behind in payments). Following tribunal, the tenant actually paid the outstanding arrears. But, unfortunately, the tenant then fell behind in rent again. The agent eventually got possession of the property.

Payout – EBM RentCover paid out a total of $19,479.30 for the loss of rent

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Please note, all claims are evaluated on a case-by-case basis and many different factors impact whether a claim is paid or not. If you have a claim that is like one of the above, there is no guarantee it will be paid out – your claim will be assessed in its own right. Claims are not usually identical in all sets of circumstances. There are terms and conditions of the policy that must be met, and certain documents are required to substantiate a claim. The claim examples we have used were submitted under a valid policy and met all requirements of the policy terms and conditions. Click here to read an article which looks at five common issues that lead to claim denials. Or, if you need to make a claim, visit our online claims portal or call 1800 661 662.

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