By YASEMIN TALAT
HOBSONS BAY property investors were hit with big bills last financial year, with tenants costing landlords thousands of dollars in malicious damage and rental defaults.
RACV Insurances figures highlighted the high costs to landlords across the western suburbs, with malicious damage and rental defaults sitting among the top claims lodged by members with landlord insurance.
Hobsons Bay had only 30 claims over the period but had the highest average claim cost of $7444.
Wyndham was the Western Melbourne municipality with the highest number of claims with 169, closely followed by Brimbank with 165.
The average claim costs for these municipalities were $3410 and 6883 respectively.
Melton Shire was not too far behind with 122 claims averaging at $5840.
RACV Manager Personal Insurance, Phil James said the average claim costs demonstrated the financial impact property damage or lost rental income could have.
RACV members with landlord insurance lodged more than 2000 claims state wide between 1 July 2012 and 30 June 2013, with RACV paying out a total of almost $10.6 million.
Mr James said other common claims included storm damage, water damage to investment properties, burglary and fire.
“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,” Mr James said.
“Landlords should ensure they protect their investment by having the right type of policy in place and know what they are covered for,” he said.
