$285 would be landlords and contents only, you would be referring to building, contents and landlords.
AAMI for landlord insurance??
- Thread starter MelbGal
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$285 would be landlords and contents only, you would be referring to building, contents and landlords.
All bar one of my LL policies are with AAMI. A few years back I claimed for malicious damage and lost rent and they were great. Currently working on another claim that involves strata this time around so is more laborious. That said, the items that are clearly contents have been assessed and paid out quickly.
Mine is also around that price or less but remember this is for an apartment - building portion covered by the OC.
What you need to consider is what risk you will be taking on yourself with whichever Insurer you choose, whether it be AAMI or anyone else.
A quick look at the AAMI policy, and this was only a quick look, would have me concerned straight away. The policy covers your building for malicious damage by your tenant but specifically not for "carelessness". Essentially this means that you need to prove the tenant has acted with malicious intent which I have highlighted in previous posts so won't repeat the full story here. But needless to say this can be a huge problem.
There are any number of simple examples why this is a potential problem, but take for example two claims we have right now, both are for drug labs that will require extensive cleaning. One is for over $37,000 and the other is for over $19,000 for the cleaning alone (loss of rent etc. will be additional). These situations are not generally considered as malicious acts, in fact most of what is required to be done (clean up) cannot even be seen with the naked eye. You are likely to find that these costs will not be met by policies that only cover malicious damage, and therefore that cost will be left with the landlord.
The scary part is that according to the 2011-12 Illicit Drug Data Report from the Australian Crime Commission there were 809 clandestine laboratorities detected for the year, and my understanding is that this is estimated at only 10% of those that actually exist. And this figure is rising dramatically every year.
You just need to be sure you compare thoroughly and ask questions if you're unsure.
Are they in Australia? The Halo Group I can see are in the US.
Hi MelbGal,
I am the Department Manager of a large team of PMs. We dont accept any kick backs from any insurers but we do provide information on EBM, Terri Scheer and Property Insurance Plus. In past claims that I have done on my landlords behalf, I found these companies specify in Landlord Insurance so their policies are much better than your bigger companies such as AAMI, RACV, Allianze etc.
Megan Harris
I am the Department Manager of a large team of PMs. We dont accept any kick backs from any insurers but we do provide information on EBM, Terri Scheer and Property Insurance Plus. In past claims that I have done on my landlords behalf, I found these companies specify in Landlord Insurance so their policies are much better than your bigger companies such as AAMI, RACV, Allianze etc.
Megan Harris
Just a quick add-on to Brettc's comment re: malicious damage and proving it.
Sometimes it comes down to trying to get the police to attend and write a report so that you can prove malicious damage. The police feel that they have better things to do with their time than to attend your trashed property for your insurance claim. Fortunately when I was last in this situation my landlord had several friends in the police force but without those contacts they would have been in trouble.
Sometimes it comes down to trying to get the police to attend and write a report so that you can prove malicious damage. The police feel that they have better things to do with their time than to attend your trashed property for your insurance claim. Fortunately when I was last in this situation my landlord had several friends in the police force but without those contacts they would have been in trouble.
brett, i know that you only had quick look.....but can you say which Landlord policy you see at AAMI contains "carelessness" clause.....I am with AAMI and was reviewing my strata landlord policy but can't find anything
Just met an assessor (AAMI) at a rental property this week that we took over management on. Cigarette burns on the carpets not covered as they are not deemed malicious!
Would have been covered by some of the specialist landlord insurers under accidental.
My argument was yes it could be an accident the first time but the second, third etc how can that be accidental as they were aware that cigarettes will burn the carpet after the first time? Nope not covered.
Would have been covered by some of the specialist landlord insurers under accidental.
My argument was yes it could be an accident the first time but the second, third etc how can that be accidental as they were aware that cigarettes will burn the carpet after the first time? Nope not covered.
No. Search insurance threads. AAMI will rob you. They did me. Peter
Was it car or building or landlord insurance?
This was in the AAMI Landlord Insurance Policy - the actual PDS filename was titled "landlord-freeholding-insurance-policy" and on page 15 under the section "What we cover - insured events"
"Yes
Malicious acts and vandalism – actual or attempted by persons who are not
living at the site and who enter the building or site without your consent or the
consent of any person living at the site
No
Damage or loss caused by carelessness, lack of maintenance or poor
housekeeping by you or your tenant or anyone living at the site.
Damage or loss caused by:
your tenant or anyone living at the site or anyone who has entered the
landlord building or the site with their consent,
unless you have insured the damaged or lost property under AAMI Landlord
Insurance with Tenant Protection (see page 35) in which case malicious
damage caused by your tenant or your tenant’s visitors to your insured property
at the site is covered.
Damage or loss caused by you."
The same thing also appears on page 15 of their "Strata Title Landlord Insurance Policy". Once again, I haven't gone searching in detail so whether somehow it's covered off in another way I can't be sure, but this section stood out.
Some of this is understandable as policies generally won't cover for "lack of maintenance or poor housekeeping", but it would seem to negate so many circumstances that are simply not malicious. The list for this is endless and occur frequently.
In fact this is repeated later in the wording under the Tenant Protection section where it reads:
Malicious damage by your tenant
We will pay to repair or replace damage or loss maliciously caused by
your tenant or your tenant’s visitors to your insured property at your lot or unit.
Our payment will be reduced by an amount equivalent to four weeks rent at
the rate payable under the current rental agreement.
We will not pay for loss or damage caused by carelessness, lack of
maintenance or poor housekeeping by you or your tenant or anyone
normally living at the lot or unit.
thanks brett....
Just read through strata landlord policy and confirmed your findings (I've the tenant protection).....as bold above seems like they are saying 'carelessness' is not covered regardless....
i get your point for proving what is carelessness and malicious damage...is open to interpretation
I think most insurance companies don't cover accidental cigarette or iron burns regardless of it being LL or normal home insurance - damage has to be by fire.
So if it's a few burns it's probably deemed accidental/careless.
A friend told me an insurance agent once told her that most companies dropped that cover because burning your carpet, lounge, bench top, etc. was a common rort committed by people wanting replacement items.
I myself recall many years ago people stating to others it was an easy way of getting new household items so possibly some truth in why this is.
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Landlord x 3. Yes, three, I didn't learn but all three where in close timing of six months and this is VERY IMPORTANT
you cannot change insurer or lower your excess if tenants are behind in rent , even one day. That means if Tenants are say one week behind regularly, and your change insurer you may NOT be covered until they catch up or at all. SO best time to change is when it is empty with new tenant.
FYI Peter
Both EBM and Terri scheer seem to be the best when it comes to making a claim, they have more understanding of the industry and what tenants can get up to.
Thats what my extensive research found. And I insure both house and landlord with one supplier. Yes it costs more but the last thing I want is a "gap". I.E. if the tenants trashes house and burns it down etc.. I don't want an argument of who covers what.
And dont laugh, I had a tenant dealing drugs and not paying her suppliers and said suppliers paid her a visit and firebombed her car, next to my house!
House had eaves burnt, gutter burnt, bricks charred, and smoke damage.
AAMI at first said NO cover, something about, external matter, not tenant, then OK some cover, but not all gutter and we only want to repaint it, not replace it, I said, it will rust as the zincalume cover is gone back to metal. We Argue.
Then AAMI wanted two excess because damages was one event but evicting tenants for drugs and damage and not paying, etc is ANOTHER event (get this) unrelated. WTF!
Then AAMI said OK but we need the names of who did it.
WHAT! So I am to find and say "Hey mister drug lord, can you provide your name mate".
Then AAMI says get the police report but I cannot get it, only they can, why ask me???.
I could go on but they refused to cover any inside including smoke on the walls , place stinks of smoke, etc..as wear and tear so in the end I wore that and repainted it fresh.
Lastly, AAMI took months to repair $5K (yes only $5k and you must use there people) of damage and then tried to stop paying me rent cover because of the delay. I said, IT IS YOUR F$%KING BUILDER. I cannot rent it if he is not finished! And it should have taken a week at worst.
Summary: I found AAMI did all they could to not reply, not email not record , and not commit to anything and make every aspect hard as, so your will give up.
Luckily, I work in construction so they could not BS me and in the end I wrote and said, I DONT CARE HOW MANY MEETING WE HAVE, CALLS, REPORTS, ETC... and I HAVE THREE FORMAL QUALIFICATIONs IN BUILDING AND TWENTY YEARS EXPERIENCE and I AM PISSED AND WILL NOT GIVE UP on principle. YOU ARE PAYING FOR YOUR PEOPLE, NOT ME!!!!
They gave up.
Rant over, time for cup of tea, keep saying, let go of the rage, let go of the rage, etc.....Peter
