April 2022
Reading Time: 4 Minutes
Many landlord-specific insurance policies require frequent inspections of rental properties. We look at why property inspections are required, how often they should be conducted and what happens when they’re not completed.
The requirement for home inspections at a regular frequency – three or six monthly is common - forms a part of most landlord insurance policies. While six-monthly inspections were previously commonplace, some insurance providers have moved to a three-monthly requirement, following the rising costs of methamphetamine contamination claims in recent years.
Regular inspections are also needed for apartments within body corporates, as inspections will be required under the body corporate insurance policy. A body corporate has a statutory duty to maintain insurance cover.
As well as being an insurance requirement, regular rental inspections can be beneficial for both landlords and tenants. While landlords will rest more easily knowing their property is being well cared for, tenants have the opportunity to raise any property maintenance issues and ensure these are dealt with in a timely manner.
Read our article on the benefits of home inspections to find out more.
It’s possible that your property will still be insured if you have let your regular inspections lapse, but only if your claim is not related to intentional damage caused by the tenant or meth contamination. In cases of storm damage, for example, your insurer will not be interested in your property inspection reports. However, in cases of intentional damage your insurer is likely to ask to see copies of your property inspections.
It is best practice to conduct your inspections on a regular basis, using your insurance policy to guide frequency. Crockers recommends you keep up to date with inspections to ensure you are covered for all claims at all times.
Although not legally required, there are certainly advantages for landlords to take out a specific landlord insurance policy. These policies are created to safeguard landlords against the risks of letting their properties. If you’re unsure which policy is the best one for you, it can be a great idea to contact a broker, or talk to your property manager if you need help finding a broker.
Both landlords and tenants alike can benefit from having rental property insurance. Read all about tenant liability insurance.
It’s important to take a close look at your insurance policy and as well as checking the frequency of rental inspections. Double check the paperwork you are required to keep to back up any insurance claims.
To be useful when an issue arises, inspections must be well documented. Your home inspection report should record the date of your inspection and include notes and property inspection photos. Five years of inspection history should be retained at all times, including photos and written comments. This is one area where having your own professional property manager such as Crockers is a huge bonus. Your property manager will manage the whole process for you, ensuring all the correct documentation is kept.
To ensure your paperwork is up to date and that your property inspections always occur on time, consider engaging the services of a professional property management company such as Crockers. Your property manager will carry out regular property inspections for you and provide a property management inspection report. You will also be able to rest assured that your property managers are experts in understanding the legal protocols for periodic inspections.
If you have further questions contact Crockers’ expert Property Management on pm@crockers.co.nz or call for a chat on 09 623 5952.
Landlord protection is about minimising debt and risk while maximising rental returns. Crockers’ Tenant Debt Guarantee is our guarantee to you against tenant debt and potential damage to a property not covered by the bond.
Call 0800 CROCKERS or Call 0800 2762 5377
