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TABLE OF CONTENTS
CONTACTS 2
IMPORTANT INFORMATION 3
GENERAL INSURANCE AND COMPLIANCE QUESTIONS 8
RENTCOVER ULTRA 10
POLICY INFORMATION 13
PLACING COVER AND RENEWALS 25
CLAIMS 28
TRAINING QUESTIONS 33
BROCHURE / FINANCIAL SERVICES GUIDE / POLICY WORDINGS / CLAIM FORM 40
SCHEDULE OF PROPERTIES 41
L:\Signing of Agents\CAR Manual 080124.doc
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
CONTACTS
Additions / Cancellations
Note: Additions and Cancellations via RCPLive is the most convenient method, contact us for more
details
Website: www.rentcover.com.au
E-mail: admin@rentcover.com.au
Facsimile: (03) 9425 1800
Post: Suite 4/651 Victoria Street Abbotsford V 3067
Claims
(Claims are required to be submitted in writing. Details should only be faxed or emailed if
specifically requested to do so by EBM)
Phone: 1800 661 662
Facsimile: (03) 9425 1800
E-mail: admin@rentcover.com.au
Post: Suite 4/651 Victoria Street Abbotsford V 3067
Accounts
Phone: 1800 661 662
Facsimile: (03) 9425 1800
E-mail: admin@rentcover.com.au
Post: Suite 4/651 Victoria Street Abbotsford V 3067
General Enquiries
Website: www.rentcover.com.au
E-mail: enquiries@rentcover.com.au
Facsimile: (03) 9425 1800
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
IMPORTANT INFORMATION
Congratulations on being selected as a Corporate Authorised Representative of EBM Insurance
Brokers.
Once you have signed the Corporate Authorised Representatives Agreement and undertaken our
Financial Services Reform Act (FSRA) training, our administration team will register your company
with the Australian Securities & Investment Commission (ASIC).
Following ASIC registration we will issue you with a certificate acknowledging that your company is
a Corporate Authorised Representative.
One of our Business Relationship Executives will then meet with you and your staff to cover the
following:
• Insurance services that EBM provides
• EBM’s Rentcover Ultra policy in detail
• Claims training
• RCP Live (Online policy management system)
• Your role as a Corporate Authorised Representative
What does this mean to me?
Changes to the Corporations Act in the form of FSRA have placed tighter controls on who can
provide financial services as well as how they should be provided. Many of these controls involve
making individuals fully aware of the fees associated with the financial service, the risks involved in
entering into a financial service and the rights of the individual when it comes to financial services.
Do I need to have a licence?
Any company/person who provides a financial service must be a financial services licensee with
ASIC or be an Authorised Representative of a financial services licensee. EBM hold’s a Financial
Services Licence and will appoint you as their Corporate Authorised Representative. You must
comply with EBM’s Policies and procedures and may only provide the financial services that EBM
authorises you to provide as you will be conducting financial services under our license.
How do I know if I am doing the right thing?
This guide is designed to help you with all of EBM’s requirements in relation to the financial
services that you may provide.
This guide is specific to the products EBM has authorised you to arrange (Rentcover Ultra,
RentCover Platinum, TentantsCover, HolidayLetCover and Householders Rental Insurance)
and cannot be used for any other financial service that you/your company may offer.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Role of a Corporate Authorised Representative
What you MUST do
a) Applications and Cancellations MUST be in writing from the landlord (they may then be forwarded to
EBM or submitted by RCPLive).
b) Provide all landlords who may wish to take cover, with a brochure inclusive of Product Disclosure
Statement (PDS) and Financial Services Guide (FSG).
c) Provide a copy of the contract (invoice) and policy wording to the policyholder as soon as it is received.
d) Forward policy amendments to landlords as soon as practicable after being received by you.
What you are AUTHORISED to do
a) Display and provide RentCover Ultra Brochures, with PDS’s and FSG’s.
b) Provide contact details should the landlord wish to obtain further information regarding the product on
either 1800 661 662 or visit our website at www.rentcover.com.au
c) Accept landlord signed application forms and register the application on RCP Live or forward the
application to EBM.
d) Retain an application on the landlords file within your office after registering it with RCPLive.
e) Pay premiums as advised by an invoice from EBM or after premium has been calculated with an EBM
rate calculator. You may only do this if you have an authority to do so signed by the landlord.
f) Forward to EBM any alterations to a policy. This may include Insured address changes, sale of
properties etc.
g) Accept Cancellations providing they are in writing from the landlord (they may then be forwarded to
EBM or submitted by RCPLive).
h) Payment of policy renewal.
i) Claim form completion and documentation to be forwarded to EBM.
j) Quote premiums
k) Pass on RentCover information to landlords and forward letters to landlords provided by EBM.
What you are NOT authorised to do
a) Provide any written or verbal advice on RentCover Ultra or associated products
b) You cannot recommend our product over any other. That is you are not able to verbally or in general
recommend one product over another in any way.
c) You cannot place or cancel a policy without the express (written) instructions from the landlord.
d) You cannot pay for or renew a policy unless you have written authority to do so. In most instances you
will have a management authority where this is outlined.
e) You cannot act in any way to influence a landlord’s decision on a product.
Any breach of the above may lead to prosecution by ASIC and could lead to EBM Insurance Brokers
withdrawing your “Corporate Authorised Representative” status.
Our Commitment to you
It is our commitment to you to provide the best service and advice to you regarding your Insurance needs.
We have provided this manual for your training and as a reference for later use and to assist with the
lodgement of claims. EBM Insurance Brokers have trained and qualified staff to assist with all of your
Insurance needs. We will provide you with updates on any legislative changes to our industry that may affect
the products and services we offer.
Your Business Relationship Executive can assist you with marketing strategies and the Administration and
Claims staff can assist you with any policy queries you may have.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
SCRIPT FOR A CORPORATE AUTHORISED
REPRESENTATIVE
You cannot recommend our product over any other. This means that you are not able to verbally
or in general recommend one product over another in any way.
You are required to advise landlords that there is protection available for their investment
properties.
Following is a sample script of a dialogue between a property manager and a landlord.
Property Manager You need to be aware that there are insurance products available that will
provide protection for your investment properties. Here is a brochure which
provides some information.
Landlord Could you please tell me the price?
Property Manager Yes the price for RentCover Ultra is $XXXX
Landlord What does the policy cover?
Property Manager For specific details you will need to contact EBM Insurance Brokers directly.
Their freecall number is on the brochure.
Landlord Why can’t you tell me?
Property Manager There have been some changes to legislation which means that only
licensed people (such as insurance brokers) can discuss details of coverage
etc. (Refer landlord to EBM). However, should you decide to take out this
insurance cover I am able to arrange this for you and take care of the
administrative functions.
Landlord Ok well I will take out the RentCover policy, can you arrange this for me?
Property Manager I can certainly refer cover for you. I will need the request in writing so if you
could please complete the application form on the brochure.
Landlord So is the property covered straight away?
Property Manager I am using a system called RCPLive which is an e-mail type of system. As
soon as the message has been sent EBM will confirm that the cover is in
place. It will only take a moment and then I can confirm that your cover has
been accepted.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
CODES OF PRACTICE
EBM Insurance Brokers embrace the General Insurance Brokers Code of Practice.
The General Insurance Brokers Code of Practice is intended to promote good relationships
between Insurance Brokers, Insureds, Insurers and others involved in the Insurance Industry.
The “Code” is part of a self-regulatory scheme that sets out the responsibilities of participating
Insurance Brokers and requires them to establish an internal process for resolving disputes with
Insured’s.
The Code is monitored by the IEC, whose members represent consumers, the Government and
Insurance Brokers.
EBM Insurance Brokers also comply with the National Insurance Brokers Association (NIBA) Code
of Practice. This code of practice aims to promote good relations between insurance brokers and
consumers.
Objectives of the Codes
Describe standards of good practice and service to be expected of Insurance Brokers;
Promote informed and effective relationships between Insured’s, Insurers and Insurance
Brokers;
Promote efficiency in transactions in which Insurance Brokers are involved and the
effectiveness of the Insurance Brokers services to the Insured’s and insurers;
Provide for consumer involvement in dispute resolution and reviews of the Code;
Promote effective resolution of disputes between Insurance Brokers and Insured’s.
An Insurance Broker will provide suitable training for its employees and agents and ensure that
agents and employees comply with the obligations set out by the Code.
Elkington Bishop Molineaux
Privacy Policy
EBM Insurance Brokers and QBE (Australia) Limited are committed to protecting your privacy.
EBM and QBE (Australia) Limited do not trade, rent or sell landlords information. Landlords can
check the information we hold about them at any time. For more information about EBM or QBE
(Australia) Limited’s Privacy Policy please contact EBM’s office or view on our website at
www.rentcover.com.au/privacy.html.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
MONITORING AND SUPERVISION POLICY
EBM has an obligation to review the processes that you carry out as a Corporate Authorised
Representative and how we will do this is
• Desk top audit minimum of once a year
• Mystery shopping phone calls once every 6 months
• A personal visit at least every 3 months from your Business Relationship Executive
• A general service call every 2 months
DESK AUDITS
Once a year your Business Relationship Executive will deliver your renewals to you and at that
time conduct the annual desk audit. This entails your Business Relationship Executive sitting with
you for a short period of time and go through some of your paperwork to confirm if
• you have a signed application forms from your landlords,
• you have a cancellation notifications signed by your landlords,
• PDS’s & policy wordings have been forwarded to your landlords,
• brochures ,FSG’s & PDS’s are being sent together and,
• no advice is being given
MYSTERY SHOPPING CALLS
The other requirement that we have is the need to make random calls to your office, you will not
know that we are calling, we will ask some general questions about insurance to ensure that you
are providing the correct information.
The reason that we need to conduct these audits is to show that both your office and EBM are
meeting legislative requirements and also to protect yourselves and EBM against any possible
litigation regarding the insurance products we cover. These audits may identify areas that require
further training on our behalf.
EBM will contact you regarding any areas that require further training and then will conduct another
audit. In the unlikely event after further audits and training there still seems be areas of concern
that may cause a problem with our licence then we will notify you in writing that we have taken the
step of revoking your Corporate Authorised Representative status with ASIC. Again this is an
extreme and most unlikely scenario but will protect EBM and yourselves.
ONGOING TRAINING OBLIGATIONS
EBM has taken the initiative to have your company registered as a Corporate Authorised
Representative and by doing this it is OUR obligation to ongoing training on EBM insurance
products and legislative amendments.
EBM has an obligation to keep you abreast of any legislative changes that occur. We will do this by
face to face training, the regular newsletter that we forward, and email updates. We will also
forward any changes to this manual and ask that you replace the relevant pages within this
manual.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
GENERAL INSURANCE AND
COMPLIANCE QUESTIONS
NAME ___________________________________________________ DATE:________________
_________________________________________________________________________
COMPANY _________________________________________________________________________
Please circle the correct response:
Question 1
What does FSRA stand for?
(a) Food Suppliers Regulatory Authority
(b) Financial Services Reform Act
(c) France & Southern Russia Alliance
(d) Fred, Sarah, Robert, and Anne
Question 2
Who will regulate licences issued for FSRA?
(a) ASIC (Australian Securities and Investments Commission)
(b) ASIO (Australian Security Intelligence Organisation)
(c) ACCC (Australian Competition and Consumer Commission)
(d) ASX (Australian Stock Exchange)
Question 3
As a Corporate Authorised Representative of EBM Insurance Brokers, I can….
(a) Advise in detail of EBM Insurance products, Policy coverage or Policy specifics YES / NO
(b) Provide RentCover Ultra brochures to landlords YES / NO
(c) Add or cancel policies on RCPLive following written instructions from landlords YES / NO
(d) Are you required to retain completed brochure applications on file YES / NO
(e) Advise landlord’s of which policy best suits their needs YES / NO
(f) Pay premiums and renewals on behalf of landlords (with their authority) YES / NO
(g) Complete claim forms on behalf of landlords YES / NO
(h) Advise landlords that they should call EBM direct for further information YES / NO
(i) Suggest that the landlord insure with a specific company YES / NO
(j) Suggest to landlords they should change their policy from one Insurer to another YES / NO
(k) Complete an application form on behalf of a landlord to commence a new policy YES / NO
(l) As a CAR, are you able to quote premiums? YES / NO
8
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
GENERAL INSURANCE AND COMPLIANCE ANSWERS
Question 1
What does FSRA stand for?
(b) Financial Services Reform Act
Question 2
Who will regulate licences issued for FSRA?
(a) ASIC
Question 3
As a Corporate Authorised Representative of EBM Insurance Brokers, I can….
(a) NO
(b) YES
(c) YES
(d) YES
(e) NO
(f) YES
(g) YES
(h) YES
(i) NO
(j) NO
(k) NO
(l) YES
9
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
RENTCOVER ULTRA
Not all insurance policies were created equal
Enjoy the RentCover difference
Insurance can be confusing, especially when rental properties are involved. This manual is
designed to keep things simple, without insurance jargon, providing an introduction and easy
reference to the premier protection for Landlords - RentCover Ultra.
Take the time to read the contents of this manual or visit the website at www.rentcover.com.au ,
however should you still have questions or need help in any way, please don’t hesitate to give us a
call on free call 1800 661 662
Who are EBM?
Elkington Bishop Molineaux Insurance Brokers Pty Limited are among the top 10 Insurance
Brokers in Australia, and have been in business for over 29 years. We have many offices
throughout Australia.
What is RentCover Ultra?
RentCover Ultra is a landlords insurance to cover Loss of Rent, Damages and Theft to premises as
well as fixtures and fittings. It also provides an additional $50,000 contents cover for defined
events. Today tens of thousands of landlords throughout Australia utilise RentCover Ultra and
Associated Products. To illustrate the strengths of the product, in the last twelve months alone
around $4,000,000 worth of claims has been paid to landlords.
Who is the Underwriter – QBE (Australia) Limited?
QBE Insurance is a household name in Australian insurance with a experience of over 230 years.
Backed by sizeable assets, both organisations are strong, financially secure, and well respected.
EBM have entered an arrangement with our underwriters, which is called a binder. What this
means is that EBM can accept and process an application for insurance. We also have the
authority from QBE Commercial to settle claims. This allows us to settle claims without referral to
the Underwriter which has substantial advantages such as the speed of processing.
Cooling Off Period
If the landlord is not satisfied with any aspect of this Policy, We will refund the premium in full and
cancel the Policy from its commencement date if:
The landlord returns the Policy to EBM within 21 days of the commencement date of the Policy,
and
nothing has happened to give rise to a claim.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Duty of Disclosure
Under the Insurance Contracts Act 1984, the owner has a Duty of Disclosure. A notice about the
owners Duty of Disclosure appears on the Rent Cover Plus Policy form and renewal invitations.
Please read it carefully.
Care and Maintenance
The landlord must take reasonable care to:
Protect and maintain the property insured.
Prevent damage or injury to others or their property.
Comply with all statutory obligations and by-laws or regulations relating to the safety of people
or property.
Preventing Rights of Recovery
If the landlord has agreed not to seek compensation from another person who is liable to
compensate them for any loss, damage or liability which is covered by the policy, the policy will not
cover the owner for that loss, damage or liability. That is, a tenants bond must be retained by you
to cover for damages or loss of rent.
Changes
You or the landlord must tell us as soon as possible if circumstances occur, or if changes or
alterations are intended or made which increase the risk of loss, damage or injury.
Unoccupancy
If the Home or Unit is unoccupied for more than 90 consecutive days, the Excess in respect of all
Insured Events except lightning, thunderbolt and earthquake, for the period exceeding 90
consecutive days up to 180 consecutive days is increased to $1,000. For any further period
exceeding 180 consecutive days this Excess is then increased to $2,000.
The period of unoccupied consecutive days is calculated from the date when the Home or Unit was
last occupied by the landlord or a tenant residing at the premises, regardless of the
commencement or renewal date of the Policy.
Cancellation
The landlord may cancel this Policy at any time by notifying EBM in writing. A proportion of the
premium for the unexpired Period of Insurance, less an administrative charge not exceeding
$30.00, will be refunded.
The Underwriter may cancel this Policy by notice in writing for any reason available at law. A
proportion of the premium for the unexpired Period of Insurance is refunded to the landlord on
cancellation.
Complaint/Disputes Procedures
When a client makes a complaint, it is an opportunity for EBM to demonstrate our commitment to
excellent service. Our aim is to turn any client’s frustration into satisfaction.
If you have a complaint or dispute that has not been resolved to your satisfaction we have a
procedure in place to resolve these matters. If you would like further information on our disputes
resolution procedure please contact your account manager on 1800 661 662.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
policy information
This Section is for use by the Corporate Authorised Representative in understanding the products
that we can arrange. The content is NOT designed to be given to the prospective policyholder as
they will have to make their own decision based on the documents that you give to them regarding
the policy.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
POLICY INFORMATION
SECTION A - Damage & Theft
Damage or Theft by the Tenant to the Premises and Contents
This includes material damage to, or theft of, the building or specified contents up to the value of
$50,000, includes Malicious and Accidental Damage caused by the tenant. RentCover Ultra has
been specifically designed to remove the grey area of Malicious Damage versus Accidental
Damage by paying both.
RentCover Ultra is not designed to cover wear and tear. It is to cover a specific damage incident
that occurs, not just general deterioration of the property over the tenancy period. It is also not
designed to cover clean-up, in the simple instances this will be covered through the bond.
In terms of damages or theft by the tenant, "Contents" means:
Built in furniture, cupboards, non-portable stoves, non-portable electrical equipment, water heaters
and coolers and space heaters and coolers;
Blinds, light fittings, curtains, drapes of every description;
Floor coverings which are contained in the Premises.
Important Information
In the event of damage or theft claims you must obtain 2 written quotations to submit to our office.
If the damage is excessive, please fax all of the required information to our claims department as
soon as the quotes are received. RentCover Ultra does not cover for loss of rent while quotes are
being obtained for repairs.
Malicious Damage
"Malicious Damage" means loss or damage intentionally caused by a Tenant and where such loss or
damage has been reported to the police.
When claiming under this section you will need to attach a copy of the police report. To qualify
under this section of the policy the damage must not only have been done deliberately but also
done with malicious intent.
Excess on Malicious Damage - $400 per claim
Accidental Damage
"Accidental Damage" means sudden, unforeseen, unexpected and unintended loss or damage, not being
"Malicious Damage" and not otherwise excluded by the Policy.
Accidental Damage claims do not require a police report. Importantly also is that the Accidental Damage
cover within RentCover Ultra is not restricted to contents as it is with some other policies.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
A recent evaluation of RentCover Ultra damage claims revealed that 60-70% are Accidental Damage. This
means that the damage claims settled have been three times what they would have been under a Malicious
Damage only cover.
Excess on Accidental Damage - $400 per event
The excess on Accidental Damage claims is for each event that occurs, for example your car insurance. It
should be remembered that there needs to be an event that actually occurs, not just a gradual build up of
problems over a period of time. The excess applies to the event that occurred.
Theft by the Tenant
This includes specified contents such as carpets, curtains, blinds, light fittings, stoves, hot water systems etc.
Theft by the Tenant claims need to be reported to the police.
Excess on Theft by the Tenant - $400 per claim
What is insured
The Policy will cover the landlord for loss or damage to the Premises and Contents:
What the Policy will pay
If the Premises or Contents other than floor, wall and ceiling coverings suffer loss or damage the
Underwriters will at their option:
reinstate, repair or replace them to a condition the same as their conditions when new; or
pay for the loss or damage.
For floor, wall and ceiling coverings we will only be liable for them in the room, hall or passage in which
the loss or damage has occurred and we will at our option:
repair or replace the floor, wall or ceiling coverings; or
pay the reasonable cost of repair or replace the floor, wall or ceiling coverings; or
pay the reasonable cost of repair or replacement to a condition the same as but not better than their
market value at the time of their loss or damage based on their condition and state of repair.
The most the policy will pay during any Period of Insurance is $50,000
The Policy will not pay
For the cost of cleaning, decorating or painting unless structural damage otherwise recoverable under
Section A of this Policy has occurred to that part of the affected property
When property is damaged due to neglect or normal wear and tear
For damage to swimming pool liners
The excess which is; (a) for Malicious Damage and Theft by Tenants - $400 per claim.
(b) for Accidental Damage - $400 per event
For loss or damage caused directly or indirectly by the sea, high water, tidal wave or Tsunami, Flood,
erosion, subsidence, earth movement, landslip, atmospheric or climatic conditions, inherent defects,
structural defects, faulty workmanship, faulty design or any gradual process.
Tsunami means a sea wave caused by a disturbance of the ocean floor or by seismic movement. Flood
means the inundation of normally dry land by water from any watercourse, lake, canal, dam or reservoir.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
SECTION B - Loss Of Rent
Loss of Rent
This is where 95% of claims occur. There is no excess on any of these claims. Pre-existing conditions
cannot be covered. (i.e. tenant's must be up to date with their rent at the time of policy commencement,
damage cannot have already occurred.)
Property damaged by the tenant
If a claim is being paid under Section A and the property can not be relet until the damage is repaired, the
Policy will pay up to 52 weeks while the property is made re-tenantable and include up to 6 weeks to re-
tenant the property once it is repaired (if there is a fixed term lease in place).
Default of rent (tenant leaves owing money)
Firstly, the bond should be used to cover clean up and minor damage, any money left over from the bond
can go towards loss of rent, then the Policy will pay up to six weeks of the tenant default (over and above
whatever can be covered through the bond).
Broken lease or leaving without correct notice
Much the same as default in the use of the bond, but the Policy will pay six weeks while a new tenant is
being found (over and above whatever can be covered through the bond.)
Note: The default and broken lease sections pay a maximum of 6 weeks combined. This means
that if in the case of a broken lease a 2 week payout of defaulted rent is required, payment for
retenanting is for a maximum of 4 weeks.
It should also be noted that claims can only be paid for what the owner is legally entitled to. This
means that if the tenant is on a periodic tenancy the claim may be limited to the period for which the
tenant was required to give notice.
Denial of Access
When the tenant is given a notice to vacate, it comes the day to leave and they refuse to vacate the property,
the legal process then starts to have the tenant removed. If tenants are well advised it can take many
months to get them out, the Policy will pay up to 52 weeks while the legal process is going on (legal action
must be taken to have the tenant removed).
Prevention of Access
The tenant may be prevented access to their property due to "damage in the vicinity" the policy will
pay up to 52 weeks.
There is No Excess on Loss of Rent Claims
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
The cover provided
The Policy will indemnify the landlord for loss of Rent if;
1. The Premises are damaged and are unfit for living in and a claim has been accepted under Section A for
that damage, and
Repairs commenced promptly but at the latest within one week after the damage occurred (unless
the Underwriter have agreed otherwise in writing) and
Repairs take at least seven days to complete providing there are no unreasonable delays.
2. The Premises cannot be occupied due to prevention or denial of access caused by circumstances
beyond the landlords control.
3. The Tenant has defaulted in the payment of Rent. Default includes termination on the grounds of
hardship that has been authorised by a court or tribunal.
4. The Tenant leaves the Premises without notification.
What the Policy will pay
For claims occurring under Clauses 1 and 2 of this section the policy will pay up to fifty-two (52) weeks Rent,
limited to a maximum of $1,000 per week.
The period for which cover is provided is from the date of loss or damage until either:
The Premises are retenanted or
Where there is an ongoing Lease liability, up to six (6) weeks following the Premises becoming suitable
for Tenants to move in again, or
Where there is no ongoing Lease liability, the Premises becoming suitable for Tenants to move in again,
whichever occurs first.
For Claims occurring under Clauses 3 and 4 We will pay in total an amount up to the equivalent of six (6)
weeks Rent, up to a maximum of $1,000 per week.
All Claims under this section will be reduced by the balance of any bond monies remaining after deducting
clean up costs or any other expenses the owner is legally entitled to deduct from the bond.
The Policy Will Not Pay
Cover is not provided:
When Rent is in arrears on or before the commencement of the Period of Insurance. Cover under this
section will not apply until Rent in arrears is brought up to date.
In respect to periodic tenancies the policy will only pay actual Rent lost and not any further period where
there is no ongoing liability for payment of Rent by the Tenant or ex Tenant.
When property is damaged due to neglect or normal wear and tear.
16
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
General exclusions applying to both Sections A & B
The policy will not pay:
1. For loss or damage under Section A and B of this Policy caused directly or indirectly by:
Storm, lightning or thunderbolt, wind, rainwater
Fire or explosion
Earthquake
Burglary or theft, unless caused by Tenants
Riot or civil commotion
Malicious acts, unless caused by the Tenant
Bursting, leaking, discharging or overflowing of fixed basins, shower bases, or other fixed apparatus,
fixed tanks or fixed pipes used to hold or carry liquid of any kind
Impact caused by vehicles or animals
Breakage of glass or ceramic material
Fusion or mechanical or electrical breakdown
Vermin, insects, wildlife
Wear, tear, rust, corrosion, depreciation or gradual deterioration (directly caused by in respect of this
exclusion)
Mildew algae
Renovations, repairs, alterations or additions
The lawful seizure, confiscation, nationalisation or requisition of the property insured
Destruction of or damage to property by any government or public or local authority
War (whether declared or not), civil war
Radio-activity, or the use, existence or escape or any nuclear fuel, nuclear material, or nuclear waste or
action of nuclear fission
Settling, shrinkage or expansion in buildings, foundations, walls or pavements
The removal or weakening of supports or foundations for the purpose of alterations, additions,
renovations or repair
Damage to swimming pools or similar structures by hydrostatic pressure
Any consequential loss other than that specifically provided by this Policy
Tree roots
2. For loss or damage covered under insurance effected by a Strata Body Corporate covering the same
premises or contents.
17
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Section C - Legal Expenses
Costs incurred in minimising a rent loss
If legal expenses are incurred as a result of minimising a rent loss, the policy will pay up to $5,000
of the legal expenses. Approval should be gained for these expenses via EBM’s claims
department first (this can include solicitors fees, warrants, time in court etc.)
Legal fees are not claimable for notices that need to be issued in the normal course of running and
maintaining a rent roll. This means that the policy will not cover the cost of issuing termination
notices, staff trauma or photocopying of documents.
Costs that are covered:
Attending court on behalf of an owner
Organising a Writ of Execution
Organising a Garnishee of Wages
The maximum hourly rate claimable is $100.00 and a fully detailed tax invoice is required.
Legal Liability (Landlords’ Liability)
This section is designed to cover the risk of an owner being sued for damages to the person or
property of a tenant. This would necessitate the tenant proving some form of negligence on the
part of the landlord.
If there is an existing household policy (such as a building or contents policy) RentCover will
provide $20,000,000 to act as an excess to whatever is covered under that policy. This may be
necessary in the case of a major claim, as they can often take years to get to court, with costs
escalating. If there is no existing household policy it can cover from the ground up.
What the owner is insured against
The policy insures the landlord and any member of their family against any claim for compensation
or expenses which the owner or the member of their family become legally liable to pay for:
the death of, or bodily injury to, any person
the loss of, or damage to, property resulting from an Occurrence during the Period of Insurance
arising out of the ownership of the Premises.
An Occurrence includes continuous or repeated exposure to substantially the same general
conditions. The Underwriters regard all death, bodily injury or loss or damage to property arising
from one original source or cause as one Occurrence.
The policy pays up to $20,000,000 for any one Occurrence.
The Policy does not pay more than this amount in total under all policies the Underwriters have
issued to the owner which cover the same liability.
In addition to this amount, legal costs which have been approved.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Additional Cover
Units or other strata-titled properties
Landlords of strata-titled properties in most cases need to insure their contents against defined
risks such as fire, storm, water damage etc. Landlord’s contents generally include carpets,
curtains, blinds and light fittings, but in some cases include items such as internal paintwork.
They may also provide items of furniture or whitegoods for the tenant’s use. These items will only
be covered for the defined risks mentioned in the Policy Wording.
Houses or other single dwellings
Landlords of houses or other single dwellings generally have building insurance against “defined
risks”. Some policies include cover for contents (carpets, curtains, blinds, light fittings etc.) either
as part of the policy or for an additional premium. It is essential that owners check with the building
insurer to verify that the landlords contents are covered against these risks
Note: Landlords insuring through EBM for their building policy automatically receive an additional
10% of the Sum Insured to cover Landlord’s contents (to a maximum of $20,000) free of charge
Sum Insured and Excess
Damage or theft due to defined events: $50,000
Loss of Rent due to defined risks: $10,000
Excess on defined events - $100 per claim (except earthquake - $200)
What landlords are insured against (“defined risks”)
The landlords are insured against the events set out below. There are also some limits and
exclusions as set out in the ‘Ultra’ Home or Unit Contents Policy Insured Events wording.
The policy insures Loss or damage to Home contents or Unit contents at the Site caused directly
by any of the following events:
Fire or Explosion
But not;
Loss or damage to any item caused by:
♦ The deliberate application of heat.
♦ Scorching, melting or charring.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Storm or Rainwater
But not;
More than $1,500 for damage to contents in the Open Air.
Loss or damage caused by:
♦ Flood - Flood means the inundation of normally dry land by water
from any watercourse, lake or canal, dam or reservoir.
♦ The action of the sea, high water, tidal wave, Tsunami.
Tsunami means a sea wave caused by a disturbance of the ocean floor or by seismic movement.
♦ Water seeping through a wall or floor.
♦ Mildew, algae.
♦ Atmospheric or climatic conditions other than storm.
♦ Water entering the Home through an opening made for the purpose of alterations, additions,
renovations or repairs.
Lightning or Thunderbolt
But not;
Loss or damage caused by fluctuations in the power supply unless there is evidence of a lightning strike.
Earthquake
But not;
The first $200 for earthquake damage.
Theft
But not;
Cash or negotiable securities.
More than $1,500 for theft of contents in the open air.
Loss or damage caused by:
♦ Theft by any person unless there is evidence that the Home has been entered forcibly and violently.
Malicious Acts
But not;
Loss or damage intentionally caused by:
♦ The owner, their Family, or the- Family’s visitors.
♦ A Tenant, or Tenant’s visitors.
Riot or Civil Commotion
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Bursting, leaking, discharging or overflowing of fixed basins, shower bases, or other
fixed apparatus, fixed tanks or fixed pipes used to hold or carry liquid of any kind.
But not;
Loss or damage which;
♦ Occurs gradually over time.
♦ Results from water escaping from a shower base not fitted with a tray or waterproof membrane.
♦ Is caused by the porous condition of any tiles, grouting or sealant.
Repair or replacement or the apparatus, tank or pipe itself.
Impact by:
A vehicle, an aircraft or a water-borne craft. Space debris or debris from an aircraft, rocket or
satellite. An animal. A falling tree or part of a tree. A mast or a television or radio aerial that has
broken or collapsed. Impact means a collision of two or more objects
But not;
Loss or damage caused by:
♦ An animal kept at the Site.
♦ Felling or lopping trees at the Site.
Accidental Breakage of:
Glass forming part of an item of furniture, or, domestic telephones
But not;
Damage to any property other than the broken glass or telephone:
♦ Any item that is chipped or scratched.
♦ Glass in a picture frame, or clock.
♦ Glass in television sets, radios, V.D.U.’s or any other computer or electrical equipment.
♦ Glassware, crystal or ornaments.
♦ Mobile cellular telephones.
Fusion in an electrical motor. The Underwriter will pay the cost of rewinding the motor,
or, at their option, replacing it.
Fusion is the process of fusing or melting together of the windings of an electric motor following damage
to their insulating material as a result of overheating caused by electric current.
The owner will have to contribute towards the total cost of repair or replacement including labour charges
as follows:
• Motors up to 10 years from the date or purchase when new or rewinding – no contribution.
• For each additional year – 20% per year. In no case will Your contribution exceed 90% after
applying the excess.
But not;
Motors more than 15 years from the date of purchase when new or more than 15 years from the date of
rewinding.
Repair or replacement of additional parts or service items.
Excess on defined events - $100 per claim (except earthquake - $200)
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Excesses
"What about excesses? "
The following excesses apply to RentCover Ultra policies:
Loss of rent nil
Malicious damage $400 per claim
Accidental damage $400 per event
Theft by tenant $400 per claim
Legal expenses nil
Owners liability nil
Contents (defined events) $100 per claim (earthquake - $200)
"I’m confused about multiple excesses"
Loss of rent claims do not attract an excess at all, malicious damage and theft by the tenant claims attract
one excess only per claim. Accidental damage claims can attract multiple excesses. This means that a
separate excess will apply for each event that occurs to make up the claim. An event generally refers to
damage happening at the one time but may include a series of events resulting in damage. If damage
occurs in several areas of the property yet were caused by the one event (such as a party) only one excess
would apply.
Claims made under the “defined risks” section of the policy are subject to a $100 excess (except earthquake
which is $200).
"Can the bond be used to pay the excess?"
The bond can be used for anything that it would legally be entitled to be used for such as cleaning, minor
damage and in some cases reletting fees. If there is money available in the bond then it can be applied
towards the excess. Put simply, the excess is the portion of the claim that is not paid for by the policy, how
the shortfall is covered is up to you and the owner.
More Questions
Should you still have unanswered questions please call 1800 661 662 or send an email to
enquiries@rentcover.com.au
Our customer service representatives will be more than happy to answer your queries.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
General Questions
"Is RentCover Ultra all the landlord needs?"
As a Corporate Authorised Representative of EBM you are unable to advise or recommend a product,
you can advise the landlord that you are unable to provide advice on this matter. However, you can
ask them to consider the following when making their decision:
No. RentCover Ultra does not replace a normal "defined risks" policy (fire, storm, water damage etc.) for the
Building. At EBM we can provide a competitive quote for this. Simply contact EBM on 1800 661 662.
"Are there many claims?"
In the last 12 months there has been approximately $4,000,000 paid to landlords all over Australia.
"Who is the Underwriter?"
The policies are underwritten by QBE (Australia) Limited.
"How do I know the owner will get paid?"
The underwriter, QBE Commercial has been established for a long period of time and is a respected insurer,
who is responsible for the drawing of claim cheques. EBM will process the claim and arrange for QBE
Commercial to draw and dispatch. Most claims are settled within 5 working days from when EBM receive
the full information.
"Is it tax deductible?"
It is our understanding that the premiums are tax deductible; however landlords should consult with their
accountant for details.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Other Insurances
Building insurance for rental dwellings
This policy is designed to cover owners of residential rental properties (other than Strata Titled properties)
against “defined risks” (fire, storm, water damage etc.).
Features:
• Landlords Contents of tenanted dwellings
10% of the building sum insured to a maximum of $20,000 provided additional to the sum insured at no additional cost
• Loss of Rent for of up to 12 months
10% of the building sum insured to a maximum of $10,000 additional to the Sum Insured (if the building is damaged due to a
defined event making it uninhabitable, then owners are covered for up to 12 months rent whilst it is reinstated)
• Fire caused by Tenants
Cover for damage even if deliberately started
• Building and Contents
Repaired or replaced regardless of age in most cases
• Unoccupancy of premises for up to 90 days
Cover continues if the property is unoccupied for up to 90 consecutive days without penalty
• Property owner’s liability $20,000,000
To obtain a quote simply phone 1800 661 662 or use EBM’s Rates calculator (supplied free-of-charge on
request).
Contents of strata-titled properties or single dwellings
The insurance provided by the Body Corporate generally won’t cover a landlord’s “contents”
(carpets, curtains, blinds, light fittings etc.) against “defined risks” such as fire, storm, water
damage etc. These need to be insured independently.
Landlords without suitable protection for their contents can easily be insured with RentCover Ultra.
Should a stand-alone contents policy be required simply phone 1800 661 662.
Mortgagee’s Interest insurance
Mortgagee’s Interest insurance is sometimes required as a pre-requisite to loan approval from
lenders. This policy protects the lenders’ interest in case the Body Corporate has not correctly
insured the building.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
PLACING COVER AND RENEWALS
It is a condition precedent to the liability under this Policy that:
1.1 a Lease must be in existence at the time of the happening of loss or damage or an Event, act or
omission giving rise to a Claim.
1.2 the Premises are occupied at the time of the happening of loss or damage or the occurrence of
liability. Cover shall continue for Sections A and C for the period between the Premises being
vacated and relet and reoccupied providing it does not exceed ninety (90) days.
1.3 the request for cover has been made by the owner of the premises, in writing and that you the
property manager hold a copy of this on the owners file.
"When should cover be taken out?"
Cover can only commence when the tenant is up to date with their rent and a bond equivalent to at least 4
weeks rental value in place. If there is no existing tenant a bond equivalent to at least 4 weeks rental value
must be taken prior to the tenants occupying the property.
"There is no bond on the property"
The policy requires a bond equivalent to at least 4 weeks rental value for the policy to be valid. Should there
not be a bond in place cover should not be taken until the bond has been collected from the tenant.
"My bond is not equivalent to 4 weeks rent"
The policy requires the bond to be equivalent to at least 4 weeks rental value. There are occasions when it is
deemed to be acceptable for this to happen. If the bond is short because the rent has risen since the start of
the tenancy (meaning the bond is only equivalent to 4 weeks of the original rental value) it will be deemed as
acceptable. If submitting a claim where your bond is equivalent to less than 4 weeks rent include full details
as to why this is the case so that it can be assessed. Advice on whether the property can be insured, can be
obtained by phoning 1800 661 662.
"The tenant is currently behind in their rent"
As with any type of insurance, RentCover Ultra cannot pay claims where there is a known problem, so a
property should not be insured until the rent is up to date. If you or the owner are aware that a tenant is
already experiencing difficulties it is placing undue pressure on the policy and the claim would not be paid.
"How much do I pay?"
The price varies depending on where the property is located. The premium payable may also be a pro rata
depending on the common renewal date for landlords of the Corporate Authorised Representative. You
should refer to the pro rata calculator provided to you.
If you require a copy either phone 1800 661 662 or email enquiries@rentcover.com.au. The annual
premium is also available on our website at www.rentcover.com.au.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
"How can the premium be paid?"
Owners can pay by credit card by phoning 1800 661 662 or by Billpay with the reference indicated at the
bottom of the invoice. Should payment be by cheque or money order payments can be sent to Suite 4/651
Victoria Street Abbotsford VIC 3067.
"Where do I send the application form?"
1. EBM’s RCPLive program makes adding or cancelling properties extremely easy. This unique program
can be easily installed providing you have email access and is provided free-of-charge to Corporate
Authorised Representatives. To arrange installation or for more details email
enquiries@rentcover.com.au . A copy of the landlord’s written request for cover must be maintained
on their file.
2. You can apply over the internet by going to www.rentcover.com.au There is a specific link for
Authorised Representatives of EBM to make applying simple. A copy of the landlord’s written request
for cover must be maintained on their file.
3. Additions can also be emailed to admin@rentcover.com.au . A copy of the landlord’s written request
for cover must be maintained on their file
4. Should you be mailing an application form or a “Cover Request Form” it can be sent to: Suite 6/451
Victoria Street V 3067.
Premiums
Product RentCover Ultra
ACT $275.00
Northern Territory $306.00
NSW $315.00
Queensland $255.00
South Australia $225.00
Tasmania $205.00
Victoria $255.00
Western Australia $225.00
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
DOCUMENT REQUIREMENTS
When you organize insurance for a landlord there are many documents that you will receive from
us, all of these must be forwarded to your landlord.
These documents are:
• Brochure and Financial Services Guide
• Invoice and Product Disclosure Statement and Policy Wording
• Renewal Notices and Product Disclosure Statement and Policy Wording
The landlord must receive these documents or both of our companies could fined or have our
licence revoked. These penalties are extreme in nature.
Brochure and Financial Services Guide
There are 2 separate pieces of paper, however they must be treated as one. The brochure that
says “Rentcover Ultra” on the front is a general guide that will give the landlord a brief outline of the
product and what is and covers, and also has an application form attached.
The Financial Services Guide will have your companies contact details at the top of the piece of
paper followed by the legal requirements under the FSRA. This document is specific to your
company. This document outlines what will happen when cover is placed with EBM, the
remuneration that EBM receives and the remuneration that your company may receive, the
relationship between EBM and the underwriters, and that EBM subscribes to a disputes resolution
procedure.
Where do Invoices, Product Disclosure Statement and Policy
Wordings
The tax invoice shows the breakdown of premium, government charges, and brokers fee. The
following pages advises the property being insured, the period of cover, type of cover, and some
special and important notices. The last section that makes up the invoice is the “General Advice
Notice”, which just advises the landlord that in providing this insurance nobody has taken into
account the personal needs of the landlord.
Attached to the Invoice will be an 8 page booklet with the heading of “Product Disclosure
Statement and Policy Wording”. This lengthy document MUST be sent to all Landlords as it
outlines important information that will assist them in making an informed decision about the
product being offered.
If you have the authority to pay the landlords insurances then you may retain the invoice and pay
on this but please forward ALL of the other documentation to the landlord with the next monthly
statement that you send.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
CLAIMS
What to do if a RentCover Ultra claim occurs
Upon the discovery of any circumstances likely to result in a Claim under this Policy You or the landlord
must:
1. As soon as possible, advise EBM of the circumstances.
2. Take all reasonable precautions to prevent further loss, damage or liability.
3. Advise EBM in writing of any other insurance covering any interests at this property.
4. When requested by EBM and at your own or owners expense provide all books, vouchers,
correspondence documents, receipts relating to the possible loss.
5. Deliver detailed proof of loss to EBM as soon as possible but within thirty (30) days.
6. Send EBM every communication from anyone claiming against the owner.
7. Not negotiate, admit, decline or pay any Claim by any person.
8. Provide EBM with such information and assistance as We may require to allow Us to determine:
8.1 the circumstances of the loss which gave rise to the Claim.
8.2 the amount recoverable under the Policy, and the extent to which any other person
may be responsible for the loss and to obtain reimbursement for the loss.
What to do if a “defined risks” claim occurs
If an event happens which may give rise to a Claim You or the landlord must:
Take all reasonable precautions to prevent further loss or damage.
Notify the police immediately if any of The landlords property is lost, stolen, or maliciously or intentionally
damaged.
Tell EBM as soon as possible. A Claim form will be provided and advice on the procedure to follow.
Supply EBM with all information we require to settle or defend the Claim.
Notify EBM of any other insurance covering the same loss or damage.
Co-operate with EBM & the Underwriter fully in any action We take if We have a right to recover any
money payable under this Policy form any other person.
If in doubt at any time, ring EBM for advice (1800 661 662).
"When making a claim is an assessor required?"
Most claims do not require an assessor however there are occasions where they are necessary, particularly
on larger or unusual claims. Please check with our claims staff to establish if this is necessary for your claim
by phoning 1800 661 662 during business hours. You will be asked the extent of the damage and the
approximate cost of repairs.
28
E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
What you or the owner must not do
You or the landlord must not:
Admit liability if an accident occurs which is likely to result in someone claiming against Your landlord.
What the Policy does
The Underwriter has the right to take over and conduct in the landlords name the defence or settlement of
any Claim or to prosecute in The landlords name for damages. The Underwriter has full discretion in the
conduct of any proceedings and in the settlement of any Claim.
What can affect a claim
The amount of a Claim will be reduced by the Excess shown in the Policy document or on the Schedule.
The Underwriter may refuse to pay a Claim if the landlord is in breach of their Duty of Disclosure or any of
the conditions of this Policy, including any endorsements noted on or attached to the Schedule.
The Underwriter will pay only for loss or damage from the same event to property insured by this Policy even
if it is covered under more than one section of the Policy.
The Underwriter may be entitled to refuse to pay or to reduce the amount of a Claim if:
It is in any way fraudulent or
Any fraudulent means or devices are used by the landlord or anyone acting on the landlords behalf to
obtain any benefits under this Policy.
"Where do I get a claim form?"
Internet: A claim form can be downloaded over the internet at www.rentcover.com.au where there are two
versions. A PDF file to print out and fill in manually, or a Microsoft Word file that can be saved to your hard
drive and filled out as a form. Always save the completed claim form under a different name so that the
original can be used for another claim, the form will then need to be printed, signed and mailed to us.
Email: Send an email to admin@rentcover.com.au and a claim form will be posted to you.
Phone: To request a claim form to be posted to you simply phone 1800 661 662.
In all cases an original signed claim form is required before a claim can be settled.
"Can I submit my claim by fax or e-mail?"
No. You need to submit an original signed claim form. Faxed or emailed copies are not acceptable. Only
submit information by fax or e-mail if you are specifically requested to do so by an EBM claims officer.
"How long does a claim take to settle?"
Most claims are settled within 5 working days from when EBM’s office in Melbourne receives the
full information they require. Once the settlement has been calculated the cheque is posted to you
or the owner for dispersal. Some claims take longer, particularly major damage claims and those
requiring an assessor. If we require more information to settle the claim we will generally contact
you within 48 hours. Providing all required information will ensure the claim is settled in the
shortest possible time.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
"What if the landlord is not satisfied with the settlement?"
You or the landlord should contact your account manager if you are not satisfied with a settlement offer or
our service. Should the matter still not be resolved further information regarding our disputes resolution
procedure is available by phoning 1800 661 662.
"What information is required to submit a claim?"
Everything that is required when submitting a claim is detailed on the claim form. Information not being
supplied is likely to delay the settlement so it is worthwhile ensuring all information is supplied with the
original claim form.
Original invoices are required (not copies) before settlement can take place.
The Underwriter does not authorise the repairs. It is in the client’s best interest to commence repairs
immediately to minimise further rent loss. The policy will not indemnify loss of rent while the
Underwriters process a claim.
A claim will not be paid unless the original tax invoices, showing the work has been completed, are provided.
If damage quotes are being submitted where the damage is over $500.00 2-3 quotes must be submitted
with the claim.
Painting
Advise why the property needs to be repainted
Provide a full break up of costs ie. How much per room
If you are submitting quotes, and the cost to repaint exceeds $500.00, we require 2-3 quotes
Advise when the property was last painted
Carpet
Advise why the carpet needs to be replaced
Provide a full break up of costs for the carpet ie. How much per room
If damage quotes are being submitted where the damage is over $500.00 2-3 quotes must be submitted
with the claim.
Advise the age of the carpet
Blinds
Advise why the blinds need replacing
Forward a full break up of costs ie. How much per room
If damage quotes are being submitted where the damage is over $500.00 2-3 quotes must be submitted
with the claim.
Miscellaneous
Basins / sinks – advise what this is made out of ie. Ceramic, porcelain etc.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
CLAIM EXAMPLES
Claim Example #1
When "Child's Play" goes too far
Generally, damage caused by a child is not classified as malicious by Insurers', that's why the
inclusion of Accidental Damage in RentCover Ultra is so important. Unlike some policies
Accidental Damage applies to both the building and contents. Take a look below as to how
this claim was settled.
You need "Accidental Damage" covered by RentCover Plus
This damage was caused by an 8 year old child
Rent paid to 06.05.01 Date tenant vacated 26.05.01 Repairs completed 30.06.03
Age of carpets 3 years
Claim Settlement
Loss of Rent:
Arrears (06.05.03 to 26.05.03) 750.00
Repair period (27.05.03 to 30.06.03) 1,250.00
TOTAL RENT PAID $2,000.00
Damage:
Carpets 1,162.00
Electrical 206.10
Repairs 4,517.59
Blinds 635.00
Repair toilet 237.60
Less 30% depreciation on carpet (348.60)
Less excess (on damage) (400.00)
TOTAL DAMAGE PAID $6,009.69
Note that only one excess applied in this case however multiple
excesses often apply to Accidental damages claims
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Claim Example #2
A unit that rents for $200 per week with a bond equivalent to 4 weeks rent ($800). The tenant has
rented the property for the past 12 months without a problem and has recently signed a new 6
month lease. The tenant loses his job and suffers a marriage breakdown, and is unable to pay the
rent.
Date rent was paid to 10.06.03
Notice to leave expiry 24.06.03
Tenant vacated 14.07.03
New tenant commences 05.08.03
Losses Claim settlement
Cleaning 180 Loss of rent (11.06.03 to 24.06.03) 400
Lawn mowing 60 Denial of access (25.06.03 to 14.07.03) 600
Keys/locks changed (tenant kept) 140 Retenancy (15.07.03 to 04.08.03) 400
Paid from bond: 380 Less bond residual (420)
Claim Paid: $980
Loss to Landlord Nil
Note retenancy is only paid when a current lease is in place
Claim Example #3
The tenant left the property without giving notice and was already 2 weeks in arrears. They had
severely damaged internal walls and smashed light fittings. The rent was $250 per
week, the bond was $1,000. It took 6 weeks to repair the property and re-let.
• Date rent paid to 02.04.03
• Lease period 12.02.03 to 11.02.04
• Tenant vacated 16.04.03
• New tenant commenced 16.07.03
Losses Claim settlement
Cleaning 420 Loss of rent (03.04.03 to 16.04.03) 500
Lawn mowing, gardens 80 Damage: 3,500
Reletting Fee 250 Less 2 excesses: (800)
Damage 3,500 Repair time (17.04.03 to 30.04.03) 500
Loss of rent 3,000 Retenancy (01.05.03 to 11.06.03) 1,500
Uninsured loss of rent (12.06.03 to 16.07.03)
Bond Collected 1,000 Less bond residual (0)
Claim Paid: $5,200
$800
Loss to Landlord
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
TRAINING QUESTIONS
Rentcover Ultra QUESTIONs
NAME POSITION
COMPANY CODE
Please CIRCLE the correct answer
Question 1: The RentCover Ultra policy provides how many weeks for denial of access?
(a) 6 weeks
(b) 12 weeks
(c) 26 weeks
(d) 52 weeks
Question 2: What is denial of access?
(a) Being locked out of your house because you’ve lost your keys
(b) Having your phone barred due to non payment
(c) A landlord refusing to allow you to occupy the property during holiday periods
(d) It covers Loss of Rent where a tenant refuses to leave the property following the
issue of a termination notice
Question 3: For rent default how many weeks does the RentCover Ultra policy cover?
(a) 5 weeks
(b) 6 weeks
(c) 8 weeks
(d) 9 weeks
Question 4: If a tenant breaks their lease, RentCover Ultra will cover up to how many weeks rent?
(a) 5 weeks
(b) 6 weeks
(c) 8 weeks
(d) 9 weeks
Question 5: What is prevention of access?
(a) The same as Denial of Access
(b) Where a landlord has changed the locks due to non payment of rent
(c) Where a tenant is unable to occupy a property due to no fault of their own or the
landlord’s such as damage in the vicinity
(d) I have absolutely no idea
Question 6: What is the excess on Loss of Rent claims?
(a) The equivalent of 4 weeks rental value
(b) $400
(c) There is no excess on Loss of Rent claims
(d) $100
Question 7: Select the items from the following list that are covered by RentCover Ultra
(a) Malicious Damage caused by a tenant
(b) Accidental Damage
(c) Cleanup due to the tenants poor living habits
(d) Theft by the Tenant of fixed contents items
(e) Maintenance due to the age of the property
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Question 8: Does the RentCover Ultra policy cover damage that has
occurred over a period of time?
Yes / No
Question 9: Does RentCover Ultra cover Accidental Damage? Yes / No
If yes, please select the examples that are likely to be classed as Accidental Damage.
(a) A tenant spills red wine on the carpet at a party
(b) A storm causes a tree to fall on the roof
(c) Cleanup due to the tenants poor living habits
(d) A tenant attempts to clean the carpet with bleach
(e) Damage caused to walls by young children
Question 10: What is the excess on Accidental Damage claims?
(a) $100 per event
(b) $400 per event
(c) $500 per event
(d) The equivalent of 4 weeks rent
Question 11: What is the excess on Malicious Damage claims?
(a) $100 per claim
(b) $400 per claim
(c) $500 per claim
(d) The equivalent of 4 weeks rent
Question 12: How is the excess on Malicious Damage and Accidental Damage different?
(a) The excess on Malicious Damage is applied over the whole claim whereas the
excess on Accidental Damage is applied per event
(b) There is no difference
(c) The excess on Accidental Damage is greater than for Malicious Damage
(d) The excess on Malicious Damage is greater than for Accidental Damage
Question 13: When should repairs commence where there is a damage claim?
(a) Only once the claim has been approved
(b) Only once the cheque has been received for payment
(c) Repairs should commence as soon as possible, you should act in the same way as
you would if you did not have insurance
(d) Only once you have submitted the claim
Question 14: Can maintenance be claimed?
(a) Yes, providing it is necessary
(b) Yes, providing the tenant agrees that it’s a good idea
(c) No, maintenance is an owners’ responsibility
Question 15: Can cleanup costs be claimed?
(a) Yes
(b) No, cleanup can be taken from the bond
Question 16: If a tenant sets a property on fire, would the Accidental or Malicious Damage
section of the policy apply?
(a) Yes
(b) No, fire is not covered under RentCover Plus
(c) Yes, providing the policy was taken out before the fire started
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Question 17: If a tenant broke a window, would the Accidental Damage
section cover the loss?
(a) Yes
(b) No, a broken window would be covered under the owners’ household policy or the
policy provided by the body corporate
Question 18: Does the Real Estate Agent need to have gone to court before a claim can be
lodged?
Yes / No
Question 19: How much is covered by RentCover Ultra for legal costs and when can these costs
be claimed?
(a) $1,000 and can be claimed for evicting a tenant
(b) $5,000 where legal costs have been incurred as a result of minimising a claim
under the Loss of Rent section of the policy
(c) $20,000,000 where a tenant suffers an injury and sues the landlord
(d) $5,000 but only if the costs were charged by a solicitor
Question 20: How much Legal Liability is covered under RentCover Ultra?
(a) $5,000,000
(b) $10,000,000
(c) $20,000,000
(d) There is no cover for Legal Liability
Question 21: What is a reinstatement fee and when does it apply?
(a) It is a small fee charged when a claim is paid out exhausting a section of the policy
that reinstates the policy back to full cover
(b) It is a small fee charged when any claim is paid out that reinstates the policy back
to full cover
(c) It is an increase in the premium charged on renewal that penalises anyone that has
made a claim
Question 22: Can the RentCover Ultra policy be taken if the tenants rent is in arrears?
(a) Yes
(b) Only if they promise to bring it up to date
(c) No
Question 23: When cover is taken does there have to be a current lease in place?
(a) Yes and there must be a new lease signed whenever one expires
(b) No, a lease is not important
(c) Yes, this also includes a “tenancy at will” or “periodic tenancy”
Question 24: Does there need to be a bond in place to take out RentCover Ultra?
(a) No, if there was a bond you wouldn’t need insurance
(b) Yes, equivalent to at least 4 weeks rent
(c) Yes but it doesn’t matter how much it is
(d) Yes but they can pay it off over a period of time
Question 25: How much is the excess for damages to contents caused by defined events?
(a) There is no excess
(b) $400
(c) The equivalent of 4 weeks rent
(d) $100 except for earthquake which is $200
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Household Insurance QUESTIONS
THE FOLLOWING QUESTIONS RELATE SPECIFICALLY TO HOUSEHOLD POLICIES, AND NOT TO
RENTCOVER ULTRA
Question 1 What does “Home” include?
(a) Fixed light fittings and fixed wall coverings
(b) Paved pathways and driveways
(c) Trees plants and shrubs
(d) All of the above
Question 2 What does “Contents” mean?
(a) Any watercraft not exceeding 3 metres in length and 10 horsepower
(b) All household goods and personal effects at the site which belong to the landlord
(c) Golf Buggies, motorcycles up to 125 cc engine capacity, garden equipment or
motorised wheelchairs none of which require registration
(d) All of the above
Question 3 Which “defined event” listed below is NOT covered by the policy
(a) Storm or rainwater
(b) Flood
(c) Lightning or thunderbolt
(d) Earthquake
Question 4 Is Fusion of an electric motor covered under this policy
Yes/ No
Question 5 Which of the following is NOT covered by the policy
(a) Wear and tear or gradual deterioration
(b) Damage to swimming pools caused by Hydrostatic pressure
(c) Vermin, insects and wildlife
(d) All of the above
Question 6 The excess that is charged for claims under this policy is
(a) $100 for all events except earthquake which is $200
(b) $400 per event
(c) there is no excess charged
(d) varies depending upon the defined event
Question 7 Unoccupancy is defined under this policy as
(a) If the insured property is unoccupied for more than 90 consecutive days
(b) If the insured property is unoccupied for more than 60 consecutive days
(c) If the insured property is unoccupied for more than 30 consecutive days
(d) None of the above
Question 8 Under which section of the policy are carpets coveredBuilding portion of the policy
(a) Contents portion of the policy
(b) They are not covered at all
Question 9 How much contents cover is provided
(a) The policy provides for an additional 10% of the sum insured (maximum $20,000)
to cover your "contents" free of charge.
(b) Nothing, the landlord will have to take out a separate cover if they want contents
cover
(c) Contents cover is not required as the property is only a rental property and will
have tenant contents
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
RentCover Ultra ANSWERS
Question 1: (d) 52 weeks (limit $1000 per week)
Question 2: (d) Denial of Access is when the tenant has been issued with a termination notice, upon
the expiry of the notice the tenant refuses to vacate the premises and the landlord
then has to apply to the courts for possession of the property. The denial
commences once the termination notice expires.
Question 3: (b) 6weeks
Question 4: (b) 6weeks
Question 5: (c) You receive up to 52 weeks rent for prevention of access to your property caused by
damage to property in the vicinity or through no fault of the property investor or the
tenant.
Question 6: (c) There is no excess on Loss of Rent claims however should there be bond money
remaining after allowable expenses it should be applied to the rent loss prior to
making a claim.
Question 7: (a) Malicious Damage caused by a tenant
(b) Accidental Damage
(d) Theft by the Tenant of fixed contents items
Question 8: No.
Question 9: Yes
(a) A tenant spills red wine on the carpet at a party
(d) A tenant attempts to clean the carpet with bleach
(e) Damage caused to walls by young children
Question 10: (b) $400 applicable to each and every event.
Question 11: (b) $400 per claim.
Question 12: (a) The excess on Malicious Damage is applied over the whole claim (once only)
whereas the excess on Accidental Damage is applied for each and every event.
Question 13: (c) Repairs should commence as soon as possible. We will not authorise repairs to the
property, the best approach is to do everything exactly the same way that you would
if you did not have insurance protection.
Question 14: (c) No, maintenance is an owners’ responsibility.
Question 15: (b) No. Cleanup can be taken from the bond but is not claimable.
Question 16: (b) No. Fire is not covered under RentCover Plus. It is covered under the building
and/or contents policy.
Question 17: (b) No, a broken window would be covered under the owners’ household policy or the
policy provided by the body corporate.
Question 18: No.
Question 19: (b) $5,000 is claimable where legal costs have been incurred as a result of minimising a
Loss of Rent claim under the policy.
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Question 20: (c) $20,000,000.
Question 21: (a) When a maximum claim is paid out under any section of the policy the cover under
that section is exhausted. Rather than leaving clients without adequate cover a
small premium is deducted from the claim payment, this automatically reinstates full
cover of the appropriate section.
Question 22: (c) No. The tenant must be up to date with their rent at the time of taking out the policy,
RentCover Plus will not respond to claims that result from a known problem.
Question 23: (c) Yes. This does however include a “tenancy at will” or “periodic tenancy” that
immediately follows a lease.
Question 24: (b) Yes. There needs to be a bond equivalent to at least 4 weeks rent.
Question 25: (d) $100 except for earthquake which is $200.
HOUSEHOLD INSURANCE
ANSWERS
Question 1 What does “Home” include?
(d) All of the above
Question 2 What does “Contents” mean?
(d) All of the above
Question 3 Which “defined event” listed below is NOT covered by the policy
(b) Flood
Question 4 Is Fusion of an electric motor covered under this policy
Yes
Question 5 Which of the following is NOT covered by the policy
(d) All of the above
Question 6 The excess that is charged for claims under this policy is
(a) $100 for all events except earthquake which is $200
Question 7 Unoccupancy is defined under this policy as
(a) If the insured property is unoccupied for more than 90 consecutive days
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E X P ER I ENC E T H E R E N T C O V ER U L T R A D IF F ER EN C E .
Question 8 Under which section of the policy are carpets covered
(b) Contents portion of the policy
Question 9 How much contents cover is provided
(a) The policy provides for an additional 10% of the sum insured (maximum $20,000) to
cover your "contents" free of charge.
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