To calculate the loss of rent: Loss of rent will start from the day after the tenant's last paid rent (e.g. - if tenant is paid up to and including the 10th May, your claim will begin from the 11th May) and will be calculated until whichever of the following events occur first:

• The day before the property is re-let
• The expiry of the lease agreement
• The date the landlord withdraws the property from the rental market
• The date from which the tenant vacated if no effort is made to replace the tenant
• The maximum amount claimable is reached

Vero will not pay more than the Landlord would be legally entitled to if the tenant had complied with their lease agreement, nor would they pay more than what could be legally recovered from the tenant.

Special Policy Conditions for Loss of Rent Claims:

• Arrears
• Bond Dispersal
• Market Conditions
• Periodic Continuation of Lease Agreements
• Loss of Rent Excess

The following documentation is required when submitting a claim:

• Completed Claim Form
  Download Claim Form (106kb)
  Ensure the back of the form is signed
• Copy of Lease Agreement for the Defaulting Tenant
  Confirm lease dates and rental amount
• Evidence of Bond refund
  Cheque remittance, email or trust account receipt
• Proof of Advertising
  Copy of advertisement/account, copy of rental list, copy of internet activity statement - two forms are required by the insurer and advertisements should be dated and include the relevant property address
• Copy of Lease Agreement for New Tenant
  To confirm date if re-let

• Copy of Tenant's Rental History Ledger
  Showing FULL rental payment history
• Copy of all Notices Issued - e.g. Remedy/Leave/Termination, Order of Tribunal
  Include all notices for the three months prior to vacate date
• Copy of Application for Tenancy
  For our recovery purposes
• Copy of Management Agreement
• Copy of first and final condition reports
  For damages claims or loss of rent claims where minor repairs are being claimed from the bond
• Copy of Receipts for Bond Deductions
  To establish legitimate bond expenses and that the bond has been exhausted

Please note: The extra requirements for the following Loss of Rent claims:

Tenant Hardship - copy of the Order of Tribunal releasing he tenant from their obligations.

Death of a Tenant (Under a Sole Tenancy) - Copy of the Death Certificate

Arrears:

When the initial period of insurance commences after the beginning of the current tenancy the following condition applies:

Cover will be limited to Section 2: 'Contents', (but excluding malicious damage) and Section 4: 'Liability to Others' of this policy if the tenant was in 'rent arrears' during the 2 months prior to the commencement of the initial period of insurance. If the tenant subsequently brings their rental payments out of 'rent arrears' for a period of two consecutive months, then these limitations will not apply from the end of that two month period or the date of the commencement of the initial period of insurance, whichever occurs last.

Bond Dispersal

All allowable re-letting expenses (allowable being defined as those for which the tenant is responsible under the terms of their lease agreement) will be deducted from the bond. Any balance of the bond will contribute towards the landlord's total outstanding rent and the policy will pay the shortfall up to the policy limits. This policy only covers loss of rent. Re-letting expenses over and above the bond are not covered. The policy will operate on the premise that a four week bond has been collected even if there hasn't been.

For properties in Queensland, the bond disbursement is at full discretion of the Property Manager. As this policy does not pay for re letting expenses , the bond money may be utilised to cover those costs. You are not required to provide evidence of bond receipts/re-letting expenses or property condition reports for loss of rent claims.

Market Conditions

If the conditions of the rental market are such that an excessive vacancy period will be sustained between tenancies the policy will not respond to that loss. This is a financial risk inherent with owning a rental property.

Periodic Continuation of Lease Agreements

For the purpose of calculating a loss of rent claim, consideration will be given to the limited obligations upon the tenant in a periodic lease situation. The benefit payable commences from the day after the tenant last paid rent up to the date vacancy is apparent and then the notice period according to your state of territory.

Loss of Rent Excess

No excess is applied to loss of rent claims in South Australia, Western Australia, Victoria, ACT, Tasmania or New South Wales.

In Queensland a $180 excess applies to loss of rent claims for absconding and defaulting tenants.