Loss of rent compensation is only available in the event of insured property under the policy being damaged by any cause not excluded whereby the damage renders a lot uninhabitable. A material damage claim must exist in the first instance. These situations usually require an assessor due to the extent of damage to the building – contact CHU. The benefit is usually paid directly to the lot owner and not the Body Corporate. The benefit is calculated on the annual rentable value of the lot affected, less expenses. The rentable value can be ascertained by way of either copies of Lease Agreements, where applicable, or liaising with local Real Estate Agents.
Temporary Accommodation – this cover is basically the same as the above cover however in this case the owner is living in the unit. An entitlement is based on the same criteria of the rentable value of the property as with the loss.
Emergency Accommodation – the policy responds to the reasonable emergency accommodation costs necessarily incurred in the event of an admissible claim for loss or damage to the insured property, whereby the unit occupied by a unit owner for residential purposes becomes uninhabitable.
Is loss of rent/rentable value cover additional to the sum insured on the building?
Yes. This benefit provides up to 15% of the building sum insured and is additional to replacement of the building itself.
Is any amount payable to tenant?
No. The policy only covers the owner. Any loss by the tenant should be claimed under their contents insurance.