QBE has revealed the costliest problems for landlords – and unexpectedly, it’s water damage and not bad tenants that’s giving them the biggest financial headache.
A review of QBE insurance data revealed storm and flood damage comprised 34% of the recent claims lodged by landlords, while “escape of liquid,” which included damage from faulty pipes, leaks, or problems with water supply, comprised 21% of claims.
Compared to the more than 50% of national claims due to water damage, defaults on rent payments and theft accounted for a much lower proportion of landlord claims at 12% and 10%, respectively, with a further 6% of claims related to electricity problems, The Daily Telegraph reported.
Frank Costigan, QBE’s chief customer officer, said landlords can minimise the damage caused by the common types of claims through property care and general maintenance and by taking some preventative steps, “such as replacing old flexi hoses” and “ensuring gutters are clean.”
Replacing flexi hoses was one easy method for preventing water damage that is often overlooked.
According to the Insurance Council of Australia, more than 30,000 claims for water damage in the year to April last year were due to the failure of the braided flexible hoses normally found underneath kitchen sinks, costing insurers an estimated $320m, The Daily Telegraph reported.