Question: If a lot owner who conducts short term letting in his unit has a loss of rent insurance claim, should that be paid at the market rent value or the short term rental rate?
A lot owner who conducted short term letting in his unit was seeking a loss of rent insurance claim. The insurer only paid out at a market rent value rather than the short term rental rate. Of course, this amount was considerably lower than the short term rate. Is the insurance company responsible for compensation at the the short term rental rate?
Answer: Short term letting really differs from policy to policy
Short term letting really differs from policy to policy. There are some insurers who require you to have a rental agreement in place. Now, obviously, that’s not possible.
You really need to get advice specific to what the coverage is under the policy. If you’re not being treated fairly in a claim, a good broker would put your case forward for you and fight the issue.
This post appears in the July 2021 edition of The WA Strata Magazine.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
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