Landlord Protection Insurance - Got a fright today!!!

[julieo]

Would be interested to hear what others think about this.

I have 6 IP's and they all have landlord protection insurace with AON. I have had these IP's between one and five years.

I have separate building insurance with NRMA (long story why I have them separate), but it has always worked ok (or so I thought).

I phoned AON today with a query and and was just generally chatting about the policy when I found out that I am not covered if any damage is caused by the tenant TO THE BUILDING (eg holes in walls, damaging built in stove, burning the place down etc) that is malicious in other words all the big ticket items

I said that is ok as I have separate building, but they told me that the building cover with NRMA I have would not likely cover malicious damage by the tenant (they were correct and apparently most - if not all building ins doesn't).

So I have now found out that for the past five years if something had happened to the building that was malicious inent by the tenant as described above I would NOT HAVE BEEN COVERED!!! :eek:

Well that certainly had me very concerned. I immediatly got myself a quote to have the building added to the policy and with AON for one property it was $715.23. I then phoned NRMA (who I already had the building with) to get the landlord protection part added and the quote was $287.72!!!!

I asked NRMA why it was only $60 dearer than what I was already paying for the building and they told me that they had only recently commenced the mortgage protection part and the underwriters had decided to just add a blanket $60 per policy for that part as they didn't believe the claims would be huge for that side of the policy. They will risk manage and review later

Can anyone tell me what they think of all this??

Regards
Julie

[blossomoz]

Personally I wouldn't touch NRMA with a barge pole. We were burnt out in the Canberra firestorm & insured with NRMA. The claim was accepted straight away & without question BUT then to get the money we had to ring the Insurance ombudsman on several occassions. They claim to give you a personal claims manager. The person may be allotted but then try contacting them.
After the fires one had to phone the ordinary line & wait to press number 1 etc, which all up took about 20 minutes. This went on for months. The aftermath with bureaucracy was actually far worse than the fire, even considering that we lost our lifetime's collection of 'stuff' which we can never replace. That's why antiques are antiques.

When we actually received 'our' money months later NRMA claimed the $300 excess despite the fact that they had had hundreds of thousands of dollars of ours, which I could have invested for 4.5% & I'm sure that they would haver received a higher return.

Sorry, to be so negative, I just speak as I found.

Cheers, we are both still together, we survived the fire & life is good.
Blossomoz

[julieo]

Wow Blossomoz that must have been incredibly frustrating and upsetting for you. It is not like a simple break in and steal a few things or a tenant damaging a $1,000 stove. This was everthing you owned in the world!!

At that time you want your insurer to live up to what they claim in their advertising and at least be there for you.

Out of curiousity (wish there was a spell check on this forum!!) what are your thoughts on landlord protection insurance and building insurance.

After giving it some thought it seems to be if you have them separated (like I have) you are missing a vital component of coverage i.e. tenant malicious damage to the building. It seems you need to have a "package" of building and landlord protection to have complete coverage.

Having said that I just remembered that another company EBM told me that their landlord protection insurance (which excludes building ins) covers malicious damage cased by the tenant (whether to fixture and fittings or the building) but to a capped amount of $50,000 which is a lot better but would not cover if for example a tenant really went amok or burned your house down.

Now I know we are only talking about a tiny percentage of tenants that would even consider any of the above, but when you have so much money in property you want your insurances to give the best coverage possible.

Regards
Julie

[ralph wiggum]

If this is of any interest - I have EBM which, like you said, has malicious damage cover up to $50,000, but have taken out building insurance with RACV (Vic) -total cost of both about $500.
Off topic, but do you have to take out building insurance for units, or is it covered by Body Corp, and landlord protection is your responsibility?
Cheers

[duncan_m]

Off topic, but do you have to take out building insurance for units, or is it covered by Body Corp, and landlord protection is your responsibility?
Cheers

Almost always, at least in SA, the Body Corporate pays the Building Insurance but it pays to check with your Body Corp to validate that their insurance cover is current.

Additionally some insurers , such as CommInsure, offer a 'top up' cover that provides coverage for you should the Body Corporate end up being uninsured or underinsured in the event of a claim.

[geoffw]

Personally I wouldn't touch NRMA with a barge pole. We were burnt out in the Canberra firestorm & insured with NRMA.I had a colleague who lost his house in those fires. He was insured with AAMI- and was very very happy with their level of service.

He stayed with his parents that night- AAMI had a fully furnished apartment for the family the next day.

Julie, you're not the only one who might need a spell checker.

http://www.somersoft.com/forums/gallery/data/522/21sotp.jpg

[Brizzy Boy]

Hi Guys,
all my IP's are insured with comminsure and at reasonable rates, with a townhouse that I have they recommended that I do a contents insurance aswell which covers all the furniture that I have in the place.
Regards
John

[blossomoz]

We have our landlord insurance with Terri Scheer Insce Brokers Pty Ltd. wwwterrischeer.com.au. In this policy we have 'loss of rent, malicious damage, accidental loss or damage, earthquake, other claims'.
We only changed to them last year so I can't say what may happen if we have a claim. We have 3 IP's with them so we receive a discount; we paid $243.99 per IP.
We heard of them thru one of our property managers who spoke highly of them. I believe that they started in Adelaide purely selling landlord insce. The actual underwriters ar QBE & Mercantile Mutual 50% each.
Sorry Julie, I had started to write this & then realised that I hadn't address it to you. I'm like you not the best when it comes to computers & forums.

Regarding the body corporate side of things. It isn't always as simple as one thinks. We have a low set villa, which is actually a duplex or maisonette in a complex. We are responsible for the roof despite the fact that it is shared. We pay $132 pa, paid to the body corp management just to have the extra cover for what is ours, if that makes sense. No, it doesn't really, not to me either, but that's how it is. Each villa pays an estimated sum depending what extras etc are in their unit, some have air conditioning etc. The body corp fees naturally pays the remainder.

I hope this may help someone. I don't have a vested interest & would be happy to here from anyone who has had a claim.
Cheers
Blossomoz

I just want to say, make sure to ask all the questions.

[julieo]

Thanks Blossomoz

What I have been questioning is whether these Landlord Protection policies provide adequete cover if the building is substantially and maliciously wrecked because your building insurance won't cover for malicious damage by a tenant (as it is considered the same as the home owner doing it to their own property) or as I was told on the phone yesterday, just say a tenant invites a mate in and he wrecks your place that is the same thing as the tenant doing it.

So I think there is a bit of a gap with some of these policies where you have separate landlord protection and building. As I mentioned earlier EBM will cover up to $50,000 for malicious damage anywhere in the place but in the unfortunate event that the unthinkable happens and the tenant or his invitee burns the house down in a drunken rage then the landlord is in serious trouble.

I know that the liklehood is very low but I personally like my insurances to give me complete peace of mind.

[Jimmyjamjars]

With regards to an earlier query about insurance on units, the body corp will cover the building but internal fixtures such as kitchen benches, cupboards etc are essentially your contents so EBM also have an additional "ultra" policy which has the same benefits of the rentcover plus policy combined with a contents component. Only costs me an extra 15 bucks. I have all my IP's covered by EBM landlords insurance & NRMA Building insurance. Good or bad, hopefully I'll never find out.
JIM

[kissfan]

I have all my IP's covered by EBM landlords insurance & NRMA Building insurance. Good or bad, hopefully I'll never find out.
JIMDitto.

Regards
Marty

[Jimmyjamjars]

Can I just say that it's threads like this that make this forum such a great asset. The troublesome threads that have caused Sim and the other moderators extra work lately only succeed in turning people away but its information and titbits like this that IMHO is what Somersoft was created for and the reason I still tune in. This info is stuff you won't find in books or "how to" manuals. Great work people. Take a bow.
"End of mushy S**t"
JIM

[julieo]

I have all my IP's covered by EBM landlords insurance & NRMA Building insurance. Good or bad, hopefully I'll never find out.
JIM

Hi JJJ,

Yes one of mine is covered by EBM landlords and NRMA for building. Am I being overly concerned do you think about the fact that the limit of payout from EBM for malicious damage by tenant is $50,000 i.e. in the worst case scenario if the house is really really wrecked there may be a shortfall for us the lanlord??

Also yes these threads are great. I for one who is pretty new on the site am often blown away with the help and assistance provided to people that post a question. And yes you won't get these 'real time' gems out of a book. I only wish I had known about this site a long long time ago.

[Jimmyjamjars]

Hard to say Julie,
I personally would think that a lot of damage would need to be done to run up 50k but thats just me. We can go through life and overly insure everything for sanf but all that money goes elsewhere instead of where we want it to go (our future wealth creation). In my case, I feel I'm adequately insured and take other steps to minimise possible damage ie: screening of tenants etc. Hope this helps :)
JIM

[XBenX]

This thread is pretty hard to follow with all the OT info... how about we link to a new topic in the future?

Perhaps a mod can split the thread so both threads of valuable info can be read?

[Les]

G'day Xbenx,

Good call. For those wanting to review the OT posts (re "quotes" and "spellcheck"), see the Help and Feedback form, http://www.somersoft.com/forums/showthread.php?t=20286

Regards,

[Dos]

Hi guys,

Wondering if anyone has had any dealings with RACQ Insurance in Qld? We currently have cars and building with them but I will need to check if the willful damage is covered as part of that building cover. anyone know anything about their landlord policy or have one??

Thanks for bringing this vital point up also and thanks everyone for your input!

Dos

[julieo]

Hi Dos,

This is the heart of what I have been posting about. NRMA told me that the normal building cover does NOT cover wilful damage by the tenant or any person they invite into the house (as it is the same as if you own a home and decide to wreck it in a fit of anger at your husband annoying you!!).

NRMA also told me that they now have Landlord Protection insurance that can be taken in concert with the building for (get this) a flat rate of $60 added to the building amount. When I asked why so low, I was told that as NRMA are so big they can afford to do this and will risk manage it. I have just today received the policy booklet and will check it out.

I would imagine RACQ will be similiar but the devil is in the detail.

Has anyone had a similar experience with RACQ???

[kissfan]

NRMA also told me that they now have Landlord Protection insurance that can be taken in concert with the building for (get this) a flat rate of $60 added to the building amount. When I asked why so low, I was told that as NRMA are so big they can afford to do this and will risk manage it. I have just today received the policy booklet and will check it out. Hi julieo.

Would be good if you could post your thoughts re the NRMA booklet on Landlord Protection insurance. Just wondering if they cover everything that the other companies do (or claim to).

Regards
Marty

[julieo]

Well I have just had a look over the booklet and guess what. The $60 does cover for wilful damage to the building but don't cover for contents (eg carpets, light fittings, domestic appliances not built in etc). So I will call up tomorrow and find out how much extra to say include $20,000 worth of of conents and let's see how much the premium increases.

As my husband just said, these insurance staff and good at telling you what your premium covers but not so forthcoming about what it doesn't cover. The girl did not even mention to me that I would not be covered for carpets which I would imagine is something any lanlord would need coverage for.

cheers
Julie

[Jimmyjamjars]

Well where do I start!!!!
My EBM Ultra ($245) landlord insurance is up for renewal on a unit I have so I thought I'd price the NRMA landlord insurance, seeing as I already have quite a few policies with them and eligible for their advertised discounts, ie:
Multi Policy Discount
No Claim Bonus
Years of Insurance

I currently have Fully Comprehensive car insurance, Contents Insurance and Building Insurance on 4 properties with NRMA so thought the price would at least be competitive. Well, after talking to the guy on the phone for 15 minutes, and ONLY matching the amounts EBM was covering for, he came up with a price of over $305. When I told him that his price wasn't even competitive with my current cover, he asked what I was paying presently. After telling him, he instantly said he could probably come down to $255.
SO MUCH FOR BEING A VALUED MULTI POLICY HOLDING CLIENT :mad:
Jim

[julieo]

Well where do I start!!!!
My EBM Ultra ($245) landlord insurance is up for renewal on a unit I have so I thought I'd price the NRMA landlord insurance, seeing as I already have quite a few policies with them and eligible for their advertised discounts, ie:
Multi Policy Discount
No Claim Bonus
Years of Insurance

I currently have Fully Comprehensive car insurance, Contents Insurance and Building Insurance on 4 properties with NRMA so thought the price would at least be competitive. Well, after talking to the guy on the phone for 15 minutes, and ONLY matching the amounts EBM was covering for, he came up with a price of over $305. When I told him that his price wasn't even competitive with my current cover, he asked what I was paying presently. After telling him, he instantly said he could probably come down to $255.
SO MUCH FOR BEING A VALUED MULTI POLICY HOLDING CLIENT :mad:
Jim

wow that is interesting JJJ, I did not even though these salespeople could negotiate like that. I thought what came up on their screen was what you had to pay. I would be interested in your thoughts when you compare the two policies when you receive the NRMA booklet. It is so bloody hard to compare what you are getting as they all word their policys quite differently but could be meaning the same thing, or then again NOT!!

Please let us know what you think of the coverage as with my experiences you find out a lot more by reading the booklet yourself than what the operator tells you as they can sometimes leave out the important stuff.

Regards
Julie

[kissfan]

Hi all.

What happened to the $60 landlord insurance that was being talked about by NRMA. Or does that NOT cover you for as much as say the EBM Ultra policy would.

Regards
Marty

[knightm]

Hi JJJ,

Yes one of mine is covered by EBM landlords and NRMA for building.


My pm arranged EBM ultra for one of mine and a building policy as well - but I thought that was with EBM too? Can anyone confirm whether EBM do building policies? I know I have a policy - I have made a claim on it - but maybe its with someone else...

:confused:

[julieo]

Hi all.

What happened to the $60 landlord insurance that was being talked about by NRMA. Or does that NOT cover you for as much as say the EBM Ultra policy would.

Regards
Marty

Marty I think the $60 you were referring to was in an earlier post of mine where NRMA gave me a quote for the building on an IP and said to get full landlord protection it was only an extra $60 as NRMA were new in this market and had set this flat rate and would risk manage and see how it goes. I looked through the booklet and all seems ok but the proof of the pudding willl be if claim time comes.

Cheers
Julie

[kissfan]

Marty I think the $60 you were referring to was in an earlier post of mine where NRMA gave me a quote for the building on an IP and said to get full landlord protection it was only an extra $60 as NRMA were new in this market and had set this flat rate and would risk manage and see how it goes. I looked through the booklet and all seems ok but the proof of the pudding willl be if claim time comes.

Cheers
JulieHi.

I was assuming that the insurance JJJ was talking about incorporated one of his I/P's (building) already insured by NRMA, and if that is indeed the case that he should qualify for the $60 landlord insurance, not $305 that was first quoted to him.

Regards
Marty

[kissfan]

Hi again.

Just re-read JJJ's post re the property in question and saw that it is actually a unit, in which case it probably does not have a buildings policy with NRMA which would therefore not entitle him to the $60 landlord insurance.

I'll shut up now, just confusing myself let alone anyone else, lol.

Regards
Marty

[Bricks & Mortar]

Julie,
Have you considered using a brokage firm
We use Oamps in Melbourne, I believe they have branches interstate


:)
At least get a quote from them.

When we organised our insurance I believe there was 'optional extras' to cover damage by tennant, or rent defaults etc. I'm pretty sure that the average insurance co's don't often cover all extras you may require.

We even had additional cover when the last Cyclone went thru the top end of Queensland for our townsville units.

Anyway it's 'Food for thought'

cheers
Timm

[julieo]

Julie,
Have you considered using a brokage firm
We use Oamps in Melbourne, I believe they have branches interstate


:)
At least get a quote from them.

When we organised our insurance I believe there was 'optional extras' to cover damage by tennant, or rent defaults etc. I'm pretty sure that the average insurance co's don't often cover all extras you may require.

We even had additional cover when the last Cyclone went thru the top end of Queensland for our townsville units.

Anyway it's 'Food for thought'

cheers
Timm

Yes Timm,

I will have a good look at all my insurances and contact a broker. We use a broker for all financing stuff so why not for insurances.

Cheers
Julie

[Peter 14.7]

Hi All

Using this thread as started I invite comment of good suppliers of tenant and home insuranc ein Victoria.

I have contacted Oamps & propose to try the other borker and EBM Ultra

Any others for a good supplier.

Peter 147