By XAVIER SMERDON
NEW insurance figures show that property investors in the western suburbs are facing huge risks with more than 500 claims for malicious damage and rental defaults being lodged with RACV Insurance.
RACV Manager of Personal Insurance, Phil James, said the company’s latest data showed that 169 people made claims in Wyndham, 165 were made in Brimbank and122 were made in Melton.
A further 30 claims were lodged in Hobsons Bay and 15 were lodged in Maribyrnong.
In total the bill for the West came to almost $30,000.
“The average claim cost almost $3,500 in Wyndham, $7,000 in Brimbank and $6,000 in Melton, demonstrating the financial impact property damage or lost rental income can have,” Mr James said.
Mr James said members with landlord insurance lodged a total 2,234 claims statewide between July 1 2012 and June 30 2013, with RACV paying out a total of almost $10.6 million.
“Last financial year RACV Insurance paid out an average of $4,323 for 380 claims for malicious damage and an average of $3,341 for 370 incidents of tenants defaulting on rental payments but remaining in the property,” he said.
“RACV Insurance also paid out an average of $3,087 for 213 claims for renters defaulting on rent when vacating the property without notice.
“Other common claims included storm damage, water damage to investment properties, burglary and fire.”
Mr James said the RACV data showed it was essential for landlords to protect their investment.
“In addition to tenants causing damage, landlords also must consider the cost of natural disasters, such as storms, floods and fires and how not having adequate insurance cover could seriously hurt their investment return,” he said.
