When the Landlord Assumes Insurance Will Cover It.
Landlords sometimes assume insurance will automatically cover a loss. The PM’s role is to avoid making promises, explain what is known, help gather the evidence and direct the landlord back to their actual policy and insurer.
It is a common reaction when something goes wrong.
That is what insurance is for.
Sometimes the landlord may be right.
Sometimes they may not be.
The difficulty for the PM is making sure the landlord does not make decisions based on an assumption that the claim will be paid.
Avoid saying “insurance should cover it”.
Even when a situation appears straightforward, be careful with phrases such as:
You should be covered.
Insurance will pay for that.
Just claim it.
Landlord insurance policies vary.
There may be:
exclusions
excesses
limits
definitions
conditions
evidence requirements
The insurer ultimately decides whether the claim falls within the policy.
Bring the conversation back to the policy.
If the landlord believes something is covered, ask them to check the current policy and Product Disclosure Statement.
The useful questions are:
Is this type of event covered?
Are there exclusions that may apply?
What excess applies?
Is there a maximum claim amount?
What evidence will be required?
Does the insurer need to be contacted before repairs proceed?
That is much more useful than debating whether the PM thinks the claim will be accepted.
Separate the event from the insurance outcome.
The PM should establish what happened first.
For example:
The renter vacated owing $3,200 and damage was identified to two internal doors.
That is a factual position.
Whether the landlord can claim:
all of the rent
some of the rent
the door damage
repair costs
other expenses
depends on the policy and the insurer’s assessment.
Keep those questions separate.
Do not let insurance delay necessary action.
One of the bigger risks is assuming nothing needs to happen until the insurer responds.
The property may still need:
urgent repairs
protection from further damage
cleaning
security
safety work
re-letting preparation
The PM should identify what needs immediate attention and what should wait for insurer instructions.
Where there is uncertainty, check with the insurer.
Be careful when the landlord wants to spend before approval.
A landlord may say:
Replace everything and we will claim it.
Before significant work is undertaken, consider whether the insurer may want:
photographs
contractor reports
quotes
an inspection
damaged items retained
approval before work proceeds
Urgent work may still need to happen.
But unnecessary loss of evidence can make the claim harder later.
Explain the excess.
Even where an event is covered, the excess can affect whether the claim is worthwhile.
If the loss is relatively small, the landlord may decide not to proceed.
The PM does not need to make that decision.
But it helps to make sure the landlord is considering the likely claim value alongside the relevant excess.
Watch assumptions around rent loss.
A landlord may assume:
If the property is vacant, insurance pays the rent.
That should never be taken for granted.
Loss of rent cover may depend on:
why the rent was lost
the type of claim
policy limits
maximum benefit periods
excesses
vacancy circumstances
other policy conditions
Keep accurate records and let the insurer determine what portion of the loss, if any, is covered.
The same applies to damage.
A damaged item does not automatically create an insurance claim.
The insurer may need to consider:
how the damage occurred
previous condition
age
maintenance history
whether deterioration contributed
whether the event falls within the policy wording
The PM’s job is to provide the evidence, not categorise the claim before it has been assessed.
Give the landlord a better response.
Instead of:
Insurance should cover this.
try:
This may be something worth discussing with your insurer. I will organise the relevant property records, photos and maintenance history so you have the information available for them to assess it.
That is helpful without making a promise.
Keep the PM in the right role.
The PM can:
organise records
provide timelines
supply rent ledgers
gather photographs
provide maintenance history
explain what happened
assist with information requests
The PM should be cautious about:
guaranteeing cover
interpreting complex policy wording
promising a claim amount
telling the landlord what the insurer will decide
Those decisions sit with the insurer and the policy.
Quick Insurance Check.
Before telling the landlord how to proceed, confirm:
The current policy and PDS have been checked
The facts and key dates are clear
Relevant photos and records are preserved
Any urgent work or safety issue has been identified
The insurer has been contacted where approval or guidance is needed
The likely excess is understood
No promise has been made about cover or claim value
The landlord understands that the insurer will make the final decision
A useful final question is:
Are we giving the landlord facts and evidence, or are we making assumptions about what the insurer will do?
Insurance is part of the solution, not the assumption.
Insurance can be extremely important when something goes wrong.
But it should not become the answer before the claim has even been assessed.
The better approach is:
Establish the facts.
Protect the property.
Preserve the evidence.
Check the policy.
Prepare the records.
Then let the insurer determine what is covered.
That keeps the landlord informed without creating expectations the PM cannot guarantee.