Missed inspection cover
Question from Roberta updated on 24th January 2020:
I'm going away for an extended period of time over the festive season and I can't commit to my periodic inspection. Every three months is onerous. If I don't organise an inspection will I still be covered?
Our expert Rene Swindley responded:
Technically, if you do not comply with the policy condition you will invalidate your insurance, but to what extent – that depends. This is where it gets a little tricky, depending on your insurer you will either invalidate the tenant-related losses or invalidate the entire policy. Tenant-related losses are things like meth contamination, malicious damage, deliberate damage, and associated loss of rents.
So that you can understand the extent of the risk you are taking by missing a property inspection you should first work out your insurer's approach. If, for example, you are insured with Initio, it's only the tenant-related losses that would not be covered due to your breach of the inspection condition, which is much better than having no cover at all.
Another thing you can do is make contact with your insurer and let them know your situation. If they are good they will work with you on this and likely give you continuity of cover while you are away.
One more tip: if you become a member of the New Zealand Property Investors Federation you not only get a discounted premium, but the requirement for property inspections is a more relaxed four-monthly terms.Rene is the founder of digital insurance platform Initio, which is about insuring houses online in real time to provide a faster, smoother and customer-first approach to property insurance.