In-Touch with Keystone : September 2024

Welcome to the the September edition of In-Touch

We have had a busy time lately helping many clients with various claims, either related to their personal health or their house and contents. Some of the health-related claims have included nasty injuries, cancer, and mental health situations. For house and contents insurance, we have seen claims for flooding, damage to carpet, and damage to property by tenants.

If you ever need to claim on your policy, please contact us at support@keystonefinancial.co.nz or keith@keystonefinancial.co.nz. We will do whatever we can to help you with the claim process.

 In this issue of In-Touch, we have information that's relevant for landlords. Please pass it on to any friends or family who own a rental property.

Methamphetamine contamination

Following the Herald’s recent article on the increased consumption of methamphetamine in New Zealand, this newsletter briefs you on insurance for rental properties and cover for methamphetamine contamination.
 
The article reports on wastewater methamphetamine testing results, highlighting the prevalence of its use in New Zealand. It notes, "The national average consumption rate for the entire quarter was estimated at 17.5kg a week — up 3.5kg from the average of about 14kg consumed over the previous four quarters. A cost of the social harm caused by the drug was put at $19.4 million."
 
This is a serious concern for landlords in their responsibilities under the Residential Tenancies Act 1986 to manage the contamination of rental properties.

 

Keystone Financial Solutions – rental house, home, contents, and vehicle insurance advice 

By having Keystone Financial Solutions as your insurance adviser for your rental house, home, contents, and vehicle insurance, you have an expert to advocate for you in the event of a claim, and to assist you during the process and for any other requirements and changes.

Other than the premium you pay for your insurance, there is no additional cost for this service. If you take out insurance directly with an insurer, you must deal with them and their claims or service requirements processes yourself.   

 

Cover for methamphetamine contamination 

Vero – Keystone Financial Solutions' general insurer of choice - automatically provides cover for methamphetamine contamination for houses insured as tenanted properties. Vero provides up to $50,000 of cover for testing, decontamination, and repair if:

  • you have complied with your obligations as a landlord,

  • the people who contaminated the home are your tenants, or are at the home with your tenants’ permission, and

  • at the time of the claim, testing confirms a level of chemical contamination that exceeds 15μg (micrograms) per 100cm2.

Vero’s methamphetamine decontamination cover of $50,000 is higher than that of insurers NZI, State, AA, Tower, AMI, ASB, and BNZ - which all offer a $30,000 maximum limit.

 

Landlord's obligations 

To meet your landlord's responsibilities you must:

  • Select tenants with care – including obtaining satisfactory written references and keeping records of checks you make and references you obtain.

  • Inspect your property every time the tenancy changes and at least once every six months - keeping photos and written records of the condition of the property at the time of the inspection.

 

Optional landlord's extension 

Vero has an optional landlord’s extension (an extra premium is applicable):

  • Landlord’s furnishings - $20,000

  • Malicious damage or theft by tenants - up to $20,000

  • Loss of rent up to 12 months - maximum $40,000

  • Loss of rent due to non-payment by tenants - 8 weeks

  • Loss of rent due to lawful eviction - 12 weeks

There are further obligations with the landlord’s extension:  

  • You must actively monitor the rent and take steps to get overdue rent paid. Give written notice to the tenant if the rent is 10 days overdue, requiring them to pay that rent.

  • If the unpaid rent is not received within a further five days, personally deliver a second notice to the tenants and find out whether your tenants are still living at the house.

  • Find new tenants as soon as possible.

 

Thanks for reading!

Thanks for reading this issue of In-Touch, and I wish you all the very best for the coming months. If you have any questions about something you've read or you'd like some advice on personal insurance, feel free to contact Keystone using the details below.

Keith Styles