Insurance Extension

If your tenant terminates the contract early, no worries about the insurance that you have bought for 12 months. As long as there are no insurance claims, this policy can be fully transferred to cover the next replacement tenant during the insured period provided that the tenant is qualified under credit check. The insurance will be counted based on the old rental price and insurance package. Take note that the insurance period will not be paused upon no tenancy.

Insurance package

If the second tenant early terminates the contract as well and no claims are made. You can extend the insurance again! However, the extension can be made until 23 months only. 

Coverage amount will not reset upon the continuation of insurance. Landlords can continue insurance if claims have been made before. However, the coverage will be reduced.

Example Scenario:

Tenancy : 1 January 2020 – 31 December 2020 (12 month period)
Rental : RM1,000.00
Insurance package : Basic Insurance

Coverage :
Loss of Rental : Up to RM2000(Subject to 20% excess)
Inconvenience benefit : Up to RM1,000
Household contents damage : Up to RM15,000

Case 1 –  Minor Claim:

Tenant move out early and failed to serve two months notice, however landlord manage to get a new tenant to replace the current tenant. Current tenant left a unit with door knob damage and unpaid utilities.

Loss:
Utilities : RM100
Door knob : RM50

Claim from inconvenience benefit and now the balance of inconvenience is RM850. How much landlord can carry forward to the new tenant?

Coverage:
Loss of rental : up to RM2000
Inconvenience : up to RM850(deducted from previous claim)
Household contents damage : Up to RM15,000

For this case, landlord may choose to continue the insurance to a new tenant and pay some prorated amount only. Coverage that carries forward to a new tenant is the balance only.

Case 2 – Major claim:

Tenant left the property and left unpaid rent for two months, unpaid utilities for RM800 and some cleaning RM100.

Loss:
Rent : RM1600 (80% from total rent for basic insurance)
Utilities : RM800
Cleaning : RM100

After this amount is approved and reimbursed to the landlord. Here is the balance of the insurance:
Loss of rental : RM0.00
Inconvenience benefit : Up to RM100
Household content : Up to RM15,000

For this case, landlord is advised to buy new insurance instead.

Insurance Extension

If your insurance is still valid and your tenant early terminates the contract, you can continue for the next tenancy.

How about the cost & coverage?

  1. It will be prorated by following the extended month of the new tenancy.
  2. If you have not made any claims, your coverage will be fully the same.
  3. If there is a minor claim, your coverage will be reduced.
    Example:
    Utility unpaid RM200, Inconvenience benefit’s coverage RM1000
    Your new coverage for inconvenience benefit is RM800
  4. If there is a major claim, we advice to renew the insurance.
    Example:
    Rent Loss : RM1000
    Utilities : RM800
    Cleaning : RM100

Your new coverage will be too low.

Important:

  1. Your validity period of the current insurance will not be paused upon no tenancy.
  2. The new tenant must be qualified under credit check.
  3. Your insurance can be multi extended up to  23 months.

Short term Tenancy

How to calculate?
1. Surcharge %  x Rental Price = Surcharge amount.
2. Tenant may choose to pay a lump sum in the first month or divide over the tenancy.

speedhome surcharge amount for short tenancy

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