Major insurers waive eviction requirements

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

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