Insurance Policy Changes

Section 45 – Landlord Responsibilities

On 27 August 2019, legislation took effect which affects a tenants’ liability for damage. If tenants or their guests cause careless damage in a rental property, they will be liable for the cost of the damage up to four weeks’ rent or the landlord’s insurance excess, whichever is lower.

Landlords need to provide insurance information in all new tenancy agreements and tell tenants if this information changes within a reasonable time. Landlords also need to include a statement informing tenants that the insurance policy for the property is available on request.

If a landlord fails to provide the insurance information to a tenant, or to correct any information such as changes to the insurance policy including excesses, the landlord commits an unlawful act which may attract exemplary damages payable to the tenant of up to $900.

Please ensure that you advise your property manager immediately if your insurance policy changes so that they can ensure that your tenant is advised of any changes that may affect them.