Landlord insurance helps you to protect your investment, but only if you are meeting your obligations. It can include things like intentional and accidental damage, loss of rent, and meth contamination.
IAG’s policies covering methamphetamine and loss of rent are changing. This means that New Zealand landlords now need to be meeting new obligations. Some of these obligations include:
- background and credit checking prospective tenants and keeping copies of the checks,
- conducting quarterly inspections,
- keeping photographs and written records of each inspection, and
- monitoring rent on a weekly basis.
IAG says landlords who fail to comply with any of the obligations of landlord insurance or home and contents insurance will not have meth contamination claims approved.
Unfortunately, this will be expensive for landlords who have contamination as testing alone can cost up to 2,500 dollars.
The largest insurance provider for New Zealand, IAG says the changes come after noticeable increases in meth contamination claims.
“The use of meth and its manufacture is widespread, and a growing problem throughout New Zealand. At IAG we’re seeing an increasing number of meth contamination claims and escalating public awareness of the health issues surrounding meth,” the company states in a video explaining the changes.
While inspections and rent monitoring can be seen as standard among most landlords, background and credit checks are not.
Over the last few years, tenant checking is gaining more support. Above all, it is giving landlords peace of mind that they can avoid future issues with tenants. In addition, with IAG’s new landlord insurance policies it is now something that every landlord is now considering.
If you’re still unsure where to go for a credit check, read our article below. Most importantly, make sure you read the full list of IAG’s obligations. You can access them through this document.
To sum it up, the new obligations under landlord insurance are easy to meet if you follow the right process. Firstly, make sure you credit check your tenants. Secondly, keep written records of all monthly inspections. In addition, monitor your rent and keep great financial records.
Featured image from Unsplash