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Updates to your landlord's insurance policy - March 2018

We’ve made some changes to our landlord's insurance policy wording. See below additional new wording as well as changes to existing sections.

Additions to our policy wording (03/2018)

Addition	How does this affect me?
What you are not covered for Your policy does not cover any claims for: 48 hour stand-down: any loss that occurs within 48 hours of the start date of your policy caused by storm, flood, wildfire or landslip. This exclusion does not apply: if this policy started immediately after another policy that covered this risk if this policy was taken out at the same time you purchased the house.	This new clause only affects you if you purchase a new policy. For renewing policies, this clause will only apply when you are adding new assets to your cover.
How we will settle your claim Economic repair: After a partial loss to your house that is covered by this policy, we will reduce your sum insured by the amount it would take to repair that loss. We will restore the full sum insured after the house has been fully repaired. We will not restore this cover if the house suffers a total loss.	This clause explains what happens to your sum insured when your house has been damaged, and when your full sum insured would be restored.
Glossary Contamination damage Physical damage caused by methamphetamine that exceeds the contamination level. Contamination level Chemical contamination above the acceptable levels in the latest version of the New Zealand Standard NZS 8510 for remediation of methamphetamine contamination. This includes any amendments or standards passed in substitution of NZS 8510. Methamphetamine The Class A controlled drug methamphetamine or Class B controlled drug amphetamine as defined by the Misuse of Drugs Act 1975 or any amendments or any Act passed in substitution of the Act, or any of their precursor chemicals and by-products.	These terms have either been added or changed to bring them in line with the changes made to the Methamphetamine decontamination benefit.

Updates to existing policy wording

Existing policy wording (10/2016)	New policy wording (03/2018)	How does this affect me?
Landlord's obligations In order for us to provide you with cover, you and any person in charge of your house with your permission must comply with all of the obligations below. Otherwise we may decline your claim and recover any payment already made. Before a tenancy: Be careful in your selection of tenants. You must check their references. Complete and sign a tenancy agreement. You and the tenant must complete a pre tenancy inspection and document any existing damage to your house. During a tenancy: Complete and internal and external inspection of your house at least once every three months and document any new damage or concerns.	Landlord's obligations In order for us to provide you with cover, you and any persons in charge of your house with your permission must comply with all of the obligations below. Otherwise we may decline your claim and recover any payment already made. Before a tenancy: Use reasonable care when choosing your tenants. For all adults living in your house, you must get satisfactory references from their previous landlords. If landlord references are not available, get character references. Keep records of these references and provide them to us when we ask. You and the tenant must complete and sign a tenancy agreement. You and the tenant must also complete a pre-tenancy inspection. This includes documenting, in writing and/or photographs, any existing damage to your house. Be prepared to provide these to us when we ask. During a tenancy: Complete an internal and external inspection of your house at least once every three months and document in writing and/or photographs any existing damage to your house and provide these to us if we ask.	We’ve changed these obligations to say that you now need to keep records of tenants’ references and keep records of property inspections. We will ask for these at claims time, so it’s important that you keep good records of references and inspections. Please note, this is not the full list of Landlord’s obligations – we’ve only detailed the ones that have been changed. The full list is available in the updated policy.
Illegal substances decontamination You are covered if your house suffers loss arising from the manufacture, storage, use or distribution at your house of any ‘precursor substances’ or ‘controlled drug’ as defined in the Misuse of Drugs Act 1975 or any amendments or any Acts passed in substitution of the Act. The loss must be due to: chemical contamination that you claim for that first occurred while your house is insured with us: that first occurred and continued to occur over the time that we insured your house, or if this does not apply, to the extent that it has occurred over the period that we have insured your house, or explosion resulting from chemical contamination during the period of insurance, or fire as a result of chemical contamination during the period of insurance. Limits We will pay: up to $30,000 for the cost of repairing or replacing the physical damage resulting from chemical contamination, or up to the house sum insured for the cost of repairing or replacing the physical damage resulting from explosion, or the cost of repairing or replacing the actual area of your house for physical damage resulting from fire. You must make a formal complaint to the Police about the manufacture, storage, use or distribution of any ‘precursor substances’ or ‘controlled drug’ at your house before this cover applies. This benefit only applies if the house is rented to a tenant at the time the contamination occurs. You and/or any person responsible for managing your house must comply with the obligations set out in the section 'Landlord’s obligations' on page 8. Once we have paid a claim under this benefit, cover under it ceases until an approved contractor certifies that your house has been satisfactorily decontaminated, and in the case of methamphetamine contamination, remediated to the chemical levels stated in the Ministry of Health Guidelines.	Methamphetamine decontamination We will cover your house if contamination damage occurs arising from the manufacture, storage, consumption, use or distribution of methamphetamine. The damage must be due to: contamination damage that first occurred while your house is insured with us explosion resulting from methamphetamine manufacture during the period of insurance fire as a result of methamphetamine manufacture during the period of insurance. Limits If the house has suffered contamination damage we will pay up to $30,000 for the cost of repairing it. If damage has been caused by explosion we will pay the costs to repair or replace that damage up to the house sum insured. If damage has been caused by fire we will pay the costs to repair or replace that damage based on the limits in the automatic benefit – Full replacement for fire on page 11. Before this benefit applies you must make a formal complaint to the Police about the manufacture, storage, consumption, use or distribution of methamphetamine at your house. This benefit only applies if the house is rented to a tenant at the time the contamination occurs. You and/or any person responsible for managing your house must comply with the obligations set out in the section Landlord’s obligations on page 8 before we accept any claim under this benefit. Once we have paid a claim under this benefit, cover under this benefit ceases. We will restore cover when an approved contractor certifies that your house has been remediated to the acceptance levels stated in the latest version of the New Zealand Standard NZS 8510. Excess We apply an additional excess of $2,000 in the event of a claim under this benefit. This excess amount is recorded in your certificate of insurance.	We’ve limited cover under this benefit to damage caused only by methamphetamine contamination. Before we accept a claim under this benefit, we will now need you to show us you’ve met your landlord obligations. We’ve added an additional excess you must pay when you make a claim under this benefit.
What you are not covered for Your policy does not cover liability for: 1. Asbestos handling, transportation, storage, installation, removal, treatment or use of asbestos products or asbestos contained in any products or materials.	What you are not covered for Your policy does not cover liability for: 1. Asbestos where such liability directly or indirectly arises out of, results from or is a consequence of, or in any way involves asbestos, or any materials containing asbestos in whatever form or quantity.	Rewording this exclusion does not affect your cover.