Thursday, May 22, 2014

The case for Landlord Protection Insurance

A Perth rental property that was used as an illegal drug laboratory by the former tenants has racked up over $40,000 worth of damage.
In the first week of January this year, Perth police blitzed known drug labs across the city.  The two-bedroom home rented for more than $800 a week, was located in the leafy and sought-after inner-city suburb of Coolbinia.
The UK-based landlord, who found out the news from a media report, was fortunately covered by her landlord insurance.
“The owner sent us a link to a news story online about police at a lab and said the property belonged to her,” general manager of EBM Insurance Brokers RentCover division Sharon Fox-Slater said. “Fortunately, this landlord was insured with us, as many landlord insurers don’t cover costs related to clandestine laboratory forensic clean-ups. In this case, the forensic clean-up part of the claim was more than $25,000. That didn’t include the cost of replacing a benchtop used in ‘cooking’ drugs and a dishwasher where contaminated utensils had been washed.”
In addition to damage and clean-up costs, RentCover also covered lost rent costs.

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