What Property Managers Should Know Before a Landlord Makes a Claim.
Before a landlord makes an insurance claim, the PM can help by checking the policy, gathering the right records and making sure the facts are clear. A well-prepared claim starts with understanding what happened and having the evidence ready.
When something goes wrong at a rental property, it can be tempting to tell the landlord:
You should be able to claim that on insurance.
That is a risky assumption.
Landlord insurance policies vary. Cover, exclusions, excesses, limits and evidence requirements can all be different.
The better approach is to help the landlord get organised before the claim is lodged.
Start with the actual policy.
Before making assumptions about cover, check the landlord’s current policy documents.
Look at:
what event or loss may be covered
relevant exclusions
applicable excesses
claim limits
special conditions
evidence the insurer may require
The Product Disclosure Statement and policy schedule are important starting points. Moneysmart recommends checking the PDS and policy terms before making a claim to confirm whether the event is covered and what exclusions or excesses may apply.
Be clear about what actually happened.
Before discussing insurance, establish the facts.
Ask:
What happened?
When did it happen?
When was it discovered?
Who reported it?
What damage or loss occurred?
Has anything already been repaired?
Is further damage occurring?
Has a contractor inspected the issue?
Avoid trying to fit the event into an insurance category before the facts are clear.
Get the evidence together early.
The insurer may need evidence to establish the event, the loss and its value.
Depending on the claim, that could include:
entry condition report
routine inspection reports
photographs
maintenance records
contractor reports
quotes or invoices
lease documents
rent ledger
relevant notices
renter communication
landlord instructions
Landlord insurance claim documentation can be quite detailed. For example, insurer documentation may request rental payment history, lease information, photographs, evidence of damage, notices and other supporting records depending on the type of claim.
Take photographs before things change.
If damage is involved, capture the condition before unnecessary clean-up, disposal or repairs make it harder to see what happened.
Take clear photographs and, where useful, video.
If immediate work is required to prevent further damage or address safety, document the condition first where it is practical and safe to do so.
Moneysmart specifically recommends keeping photographic or video evidence of damage before items are moved or minimal emergency repairs are undertaken.
Check the maintenance history.
Maintenance records can become important where the cause or timing of damage is questioned.
Review:
whether the issue had been reported previously
earlier contractor recommendations
work already completed
landlord approvals or refusals
whether there had been signs of gradual deterioration
previous inspection observations
The PM file should make it possible to understand the history without relying on memory.
Check the rent records.
If the claim involves rent loss or arrears, make sure the ledger is accurate and up to date.
Be ready to identify:
weekly rent
rent paid to date
arrears
tenancy start and end dates
lease expiry
notice dates
vacancy period
re-letting date where applicable
These details may be needed to establish the amount being claimed.
Do not promise that the claim will be accepted.
The PM can help identify that insurance may be relevant.
The PM should not tell the landlord:
Insurance will cover it.
A better approach is:
This may be something worth discussing with your insurer. We can help gather the records they may need.
The insurer determines whether the circumstances fall within the policy.
Consider the excess.
Not every insured event automatically means lodging a claim will be worthwhile.
The landlord should understand the applicable excess and the likely value of the loss.
That decision belongs to the landlord, ideally after checking the policy or discussing the situation with their insurer.
Avoid making admissions or deciding responsibility too early.
A damage claim may still involve disagreement about:
what caused the damage
when it occurred
whether it was accidental
whether it resulted from deterioration
whether the renter was responsible
whether maintenance contributed
Keep PM notes factual.
Instead of:
The renter deliberately damaged the door.
record:
Damage to the bedroom door was identified at the final inspection. The damage was not shown on the entry condition report.
Let the available evidence support the position.
Ask the insurer what they need.
There is little value in preparing a huge bundle of documents the insurer has not requested.
Once the claim process begins, find out:
what documents are required
whether particular forms need to be completed
whether quotes are needed
whether repairs can proceed
whether damaged items need to be retained
whether further information will be required
Then provide the relevant information clearly.
Create one claim file.
Keep the insurance matter organised.
A simple claim file could contain:
Claim summary
What happened and when.
Timeline
Important events and actions.
Evidence
Photos, reports and condition records.
Financial information
Quotes, invoices and rent records.
Communication
Relevant landlord, renter and contractor correspondence.
This makes it much easier to respond if the insurer asks for more information later.
The PM's role is preparation, not determining cover.
A good PM can make the claims process much easier.
Not by deciding whether the landlord is insured for the loss.
But by making sure the information is accurate, organised and easy to understand.
Check the policy.
Establish the facts.
Gather the evidence.
Keep a clear timeline.
Then let the insurer assess the claim.
That is a much stronger starting point than trying to rebuild the history after the claim has already begun.