INSURANCE NOTICE REQUIREMENTS
By Juli Anne Tolley
Principal owner Quinovic Tauranga
Over the years, a lot of changes have occurred in relation to the required information in a tenancy agreement and the maintenance of that information. Under section 45 (2B), (2C), and (2D) of the Residential Tenancies Act, the landlord of residential rental premises must provide the tenant with the insurance information related to the tenant’s liability for destruction or damage of the premises including:
·???????? The name or type of policy
·???????? The insurer
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·???????? The excess amounts related to tenant damage
This information is required as part of the tenancy agreement. If the premises are not insured for tenant damage, then that information should be declared.
Further, the tenant can ask for a copy of the policy for the provisions related to tenant damage. If requested, the policy copy should be provided within a reasonable time frame. Withholding the information is considered unlawful and subject to fines, and there are already published tribunal cases where penalties have been dished out for blatant violations. For example, in one case, a fine of $750 was charged to a landlord who withheld the insurance information in an effort to get the tenant to sign a new agreement, among other charges.
If coverage changes during the tenancy, the changed information should be included in an amendment to the tenancy agreement and provided to the tenant. Neglecting to do so could compromise the ability to collect the appropriate excess if that has changed and there is a related insurance claim. Further, noncompliance is considered an unlawful act and is also subject to fines.
Our Quinovic systems allow us to track insurance policies and expiry dates, and request updated information in a timely manner. This standard process helps us keep our clients compliant and protected from inadvertent errors. Please note though, it is important to keep your property manager informed of any changes that may occur out of the regular policy cycles so that you are fully compliant.