The survey further unveiled that 35% of landlords have had tenants who delayed rent payments, and 40% of these landlords utilised their rental default insurance. However, a concerning 17% lacked appropriate coverage either due to having unsuitable policies or opting out of rental default provisions.
Additionally, the survey revealed that 30% of landlords reported property damage inflicted by tenants, with 61% submitting claims for these damages. Jo Hatcher, QBE Australia Pacific's Consumer Managing Director, emphasised that many landlords mistakenly rely on home insurance for rental properties, which often does not cover events like loss of rent or tenant-related damages.
Hatcher highlighted the significance of landlord insurance, noting, "It’s a practical way to help protect your property and manage the financial risks that come with renting it out." Despite this, only 56% of surveyed landlords had landlord-specific insurance, while 43% were dependent on standard home insurance coverage.
Furthermore, QBE's findings indicated that a subset of landlords, about 20%, conduct property inspections infrequently, with some doing so only annually or not at all. Tony Waizer, QBE's householders technical manager, warned of the risks this poses, mentioning that without regular inspections, landlords may remain oblivious to potential property neglect, jeopardising their investment and possibly their insurance policy.
This recent data from QBE underscores the critical need for landlords to evaluate and, if necessary, enhance their insurance policies to safeguard against unforeseen financial strains and ensure their property investments are adequately protected.
Beyond awareness, the findings spotlight the practical steps landlords can take to fortify their financial security amid the dynamics of property rental markets across Australia.
