Blue Zebra has launched Landlord Essentials, a new insurance product for landlords who need contents cover and selected landlord-related benefits without building insurance.
The product is intended for situations where building cover is not required or has been arranged separately. Blue Zebra said Landlord Essentials uses a reduced set of underwriting questions and is available to brokers through a dedicated tile in its Zebra Lounge platform.
Landlord Essentials provides cover for loss or damage to landlord contents caused by tenant damage, accidental damage and deliberate, intentional or malicious damage. Contents cover is available up to A$70,000, subject to policy terms, conditions, limits and exclusions.
The policy also includes several additional benefits following an accepted contents claim. These include removal or disposal of damaged contents up to 20% of the contents sum insured, storage of undamaged contents up to the same limit and reasonable costs associated with preventing further loss or damage.
Eligible damaged appliances are replaced with models carrying an energy rating of three stars or higher. The product also includes motor burnout cover for items less than 15 years old.
Additional cover includes up to $60,000 for chemical decontamination of contents under long-term tenancies, up to $25,000 for malicious damage or vandalism to a body corporate building and up to A$70,000 where contents need to be permanently moved to a new address following loss or damage.
Cover for keys and locks following burglary or house break-in is available up to A$1,000, while tax audit cover is capped at A$5,000. Theft by a tenant is covered up to A$70,000, and legal liability cover is available up to A$20 mn.
The product also includes loss of rent protection for both long-term and short-term tenancy arrangements. Where a property becomes uninhabitable or untenantable, long-term tenancy cover is available up to A$1,250 per week for as long as 24 months.
For short-term tenancies, annual rental income of up to A$65,000 is covered for a maximum of 24 months. Similar limits apply where access to the property is prevented.
Where a tenant dies, the policy provides up to A$1,250 per week for 26 weeks under a long-term tenancy. For short-term tenancies, cover is limited to 12 weeks or A$65,000, whichever is lower.
Loss of rent following murder, suicide or an attempted act is also included. Long-term tenancy cover is capped at A$1,250 per week for 26 weeks, while short-term tenancy cover is available against annual rental income of up to A$65,000 for a maximum of 24 months.
Partial loss of rent is covered up to A$1,250 per week for 10 weeks for long-term tenancies. For short-term tenancies, failure to vacate is covered up to A$15,000 or 20 weeks, whichever is lower.
Rent default cover is available for long-term tenancies only. It applies to circumstances including tenant default, vacating without notice, failure to vacate, hardship and eviction, with cover of up to $1,250 per week and an overall limit of $15,000 or 20 weeks, whichever is lower.
Eviction following a notice to leave is covered up to A$1,250 per week for a maximum of two weeks. Where Blue Zebra pays a rent default claim, additional benefits include legal expenses up to A$7,500, representation costs up to A$500, replacement locks up to A$250, removal and storage of goods up to A$500, cleaning expenses up to A$500 and re-letting expenses up to A$500.
To qualify for Landlord Essentials, the total replacement cost of contents must not exceed A$70,000. Rental income must also remain within the product’s limits, set at A$1,250 per week or less for a long-term tenancy and A$65,000 or less in annual rental income for a short-term tenancy.
The product does not include building cover, which must be arranged separately where required. Blue Zebra said brokers should refer to the relevant Product Disclosure Statement and Target Market Determination for full eligibility requirements, policy conditions, limits, exclusions and excesses.
Policies are issued by Blue Zebra Insurance under binder arrangements with Chubb Insurance Australia, AIG Australia and HDI Global Specialty SE – Australia.
