Insurance Statement RTA requirement for landlords
The RTA Amendment Bill No 2 has now been passed into law and this is great news for landlords.
Tenants are now liable for lesser of four weeks rent or the landlord’s insurance excess for careless damage at the property.
As a result of this law change, there is now a legal requirement to include an insurance statement in all new tenancy agreements after August 27.
If you fail to do this, you risk being liable for a $500 penalty per tenancy.
There are three fields you are required to fill out:
1. Is the rental property insured?
2. Is there an insurance excess?
3. And what is the dollar value of the excesses?
If you have more than one excess, which is likely if you have both landlord insurance and house insurance, please list the different type of excesses.
Examples of different types of excesses are: House Insurance, Landlord’s content, Accidental damage by tenant, Intentional damage by tenant, Contamination damage.
Please note different polices may have types of excesses so please ask your insurer for this information if you are unsure.