We know your rental home is an important investment and protecting that income matters. If an unexpected event occurs that prevents your tenants from staying in the home, your Landlord Insurance Policy includes a standard ‘Loss of rent’ benefit to help replace your rental income while repairs are being made, easing the financial burden.
Example scenario
A storm severely damages the roof of your rental home, making it unsafe to live in. Your tenants need to move out and stop paying rent while repairs are being done. Through your Landlord Policy, you may be able to claim the rent you would have earned during this time, up to $20,000 for up to 12 months.
When you can claim for loss of rent
Provided your rental home was occupied and a current tenancy agreement was in place at the time of the event, loss of rent may be payable subject to your policy terms, conditions, limits, and exclusions if:
Your rental home becomes uninhabitable due to a loss covered by your policy or a loss covered by the Natural Hazards Commission Toka Tū Ake (NHC).
Your tenants are prevented from accessing your otherwise safe and sanitary rental home due to a government or local authority order relating to the event.
What uninhabitable means
Your rental home is uninhabitable when it’s not safe or sanitary to live in because of damage. Whether a home is uninhabitable will be assessed based on the available information, such as damage reports and any relevant authority notices. In some cases, this may be confirmed by us and/or by a government or local authority notice. It doesn’t apply if you or your tenants simply don’t want to stay in a home that’s otherwise safe to live in.
Your cover
What’s covered:
Up to $20,000 per event for a maximum of 12 months.
Cover ends when the home is repaired, rebuilt, and is fit to live in, or the claim is settled in line with your policy.
What’s not covered:
Loss relating to land only when your home is still safe and accessible.
Reduced rent. We won’t make up any rent difference if your tenants stay in the home at a lower rate.
We may ask for your tenancy agreement to help process the claim. Refer to your policy documents for full details on what is and isn’t covered.
We’re here to help
If you have questions about cover for loss of rent or want to talk about your policy, we’re here to help. Visit aainsurance.co.nz/contact for ways to get in touch.
Any questions?
Now’s a great time to review your insurance. We recommend checking your details are up to date and ensuring the policy and cover you’ve chosen is right for you and your insurance needs.
If you have any questions about your insurance, need to update your AA Insurance policies or would like a quote, don’t hesitate to contact us. You can find our opening hours and ways to get in touch with us on our contact page.
This blog provides general information only and is not intended to be a recommendation or personalised financial advice. Excesses, terms, conditions, limits and exclusions apply to AA Insurance Limited’s policies. Please check the policy wording for details of cover. The provision of cover is subject to the underwriting criteria that apply at the time.
