Landlord concerns go unfounded
Concerns about malicious damage by tenants may be keeping landlords awake at night, but they can sleep easy.
The latest AA Insurance Home Survey interviewed 500 landlords throughout New Zealand.
It found that almost 90 per cent were concerned that tenants might intentionally damage their investment property. This was closely followed by the possibility of missing rent payments at 88 per cent, and drug contamination at 87 per cent.
Despite these concerns, AA Insurance says its most common type of landlord claim over the past 12 months to May 31, 2016 has been for loss or accidental damage to property. The average cost of insurance claims from landlords is $3000.
‘‘Landlords will be reassured to find there’s a gap between what they’re most concerned about and the types of claims we see most often; accidents that can happen in any home,’’ says Amelia Macandrew, customer relations manager at AA Insurance.
Macandrew says there is a growing concern for contamination by illegal drugs.
In the same AA Insurance survey 500 tenants were interviewed.
The survey found 72 per cent were concerned about rent increases happening more than once a year, as well as repairs not being fixed correctly or adequately.
The most common type of landlord claims AA Insurance receives is for accidental damage.