An article on the Newsroom web site covered an interview with a lawyer from Bell Gully regarding the problem of commercial tenants not being able to continue paying rent. The article stated that most landlords have loss of rent cover, which is probably correct.

However it went on to say: “The official directive to close shops, restaurants, bars and other commercial buildings will mean those tenants will no longer have to pay rent and building owners will be able to claim on insurance.”

The advice we have received is that most loss of rents policies will exclude cover for any interruption or interference resulting from a notifiable Infectious Disease under the Health Act 1956.

IBANZ was asked to address this incorrect statement with the media and we therefore contacted Newsroom who have now amended their article based on our feedback. There was also an article in the NZ Herald using the Newsroom story however they did not state landlords “will be able to claim” instead suggested they should check their insurance.

We have heard a member has been contacted by a client about this article, hence why we wanted to alert you to this issue. Hopefully your clients will not have seen the original article before it was amended.