Source: https://www.domain.com.au/money-markets/major-insurers-waive-requirements-to-provide-financial-relief-for-landlords-during-covid-19-953284/
Insurers are moving to adjust
their landlord insurance products to allow holders to claim rental default
benefits from their cover without the need for an eviction notice to be served
to the tenants.
The move is in response to mounting pressure on the industry to
provide financial relief for landlords following the federal government’s
announcement on March 29 of a moratorium on evictions for six months.
Most
landlord insurance policies require an eviction notice to be served before
benefits can be claimed, leaving many landlords financially vulnerable with
tenants failing to meet payments due to the advent of COVID-19.
In
encouraging news for tenants, Allianz, IAG – parent company to NRMA,
CGU, SGIO and SGIC and WFI –and Suncorp-owned Terri Scheer have
confirmed they would not require eviction notices before landlords could claim
for tenant default assistance due to the current circumstances.
Group executive of financial services at Canstar Steve
Mickenbecker said the news was good for tenants, but whether landlords would be
able to renew their policy under the same conditions was another question.
Many insurers have already ceased offering landlord insurance to
new applicants. Of those who still are, notably Youi and AAMI, rental default
cover is no longer available as an option within the coverage.
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Jason Gwerder
Monday, 11 May 2020
