best landlord insurance?

[BV]

My current tenant is a good rent payer but I am getting feedback that they are pretty messy. I am hoping they have not done any damage, just mess, but to be on the safe side I am looking for Landlord insurance.

It doesn't matter how good the tenants are, its not only about rent default.
Liability is a bigger concern.
The tenants or one of their visitos slips and hurts themselves and they can send you broke. All your life's savings and accomplishments could be spent paying for your tenant's retirement or to fight a court case.
I'd rather have the insurer with their experienced legal teams deal with such issues.

Folks, those of you who don't have insurance get online and sign up now

 

[albertwt]

It doesn't matter how good the tenants are, its not only about rent default.
Liability is a bigger concern.
The tenants or one of their visitos slips and hurts themselves and they can send you broke. All your life's savings and accomplishments could be spent paying for your tenant's retirement or to fight a court case.
I'd rather have the insurer with their experienced legal teams deal with such issues.

Folks, those of you who don't have insurance get online and sign up now

Thanks mate for the explanation so far, it seems that there are many insurance that we need to apply before renting our IP to the tenant.

 

[veebeeseewee]

millennium

Hi all,

I wonder if anyone has come acrossed with Millennium before. Are they good for Building and Landlord insurance?

All comments are welcome!

Thanks,

 

[Sez]

The insurance agency I recommend normally doesn't operate in all states so, in my experience (As a PM often making the claims on behalf of my landlords) I have found that EBM are probably the easiest to deal with followed closely by terri scheer. I do not know if they cover private landlords. Check with your PM though and see what they recommend. No policy is perfect and you will find that most if not all insurance agencies offering landlords insurance will not cover "bad house keeping" will often make damage listed as accidental (holes in walls for example). Best thing to do is keep a little slush fund in case of emergency. take what you can from your insurance but also be prepared, they word their policies very carefully and you may not get everything you want from it!

 

[Duckyjess]

How does this compare to the building insurance as part of the body corporate ?

I am also interested in this. I have been ringing back and forth between insurers regarding insurance for units part of a body corporate. Terri Scheer provide pretty good rental default, public liability, certain contents etc for $360 (NSW) but do not cover building. My body corporate insurance will only cover common property. What sort of insurance would I be looking at to cover things like: hot water tank, stove, air-conditioner etc I'm not too worried about the walls or floor as it is solid brick and tiled throughout.

 

[happy landlord]

Does anyone have experience with AMP landlord insurance, as we are considering changing more of our policies to that company?

 

[Emo21]

question

i have received my renewal notices for the IP and PPOP insurance.So have been busy getting new quotes to compare. now problem is i am with Aami and they give a unlimited property replacement and don't ask for a rebuild cost, so when seeking new quotes all are asking for a rebuild cost and using there calculator it comes up with amounts varying from $530k to $620k for the PPOP which is way over.My estimate would be $350-380k - its a 5x2 i estimate 200m2 living space, double brick, solid timber floor through out and recently had a reno job done.The land size is 730m2 in perth. and recently valued at $490-$520k.
based on these high figure i am getting excessively high premiums, if i use my figures i get a 15% lower premium than with AAmi.

Any ideas which figures i should use.will ,i by using my figures be disadvantaged in any way with the standard LL insurance policy.

 

[Peter 14.7]

READ THIS important critical fact

Giday All

FYI I was looking at transferring my insurance away from AAMI to Terri Scheer or EDM on my agents advice however when I called my agent I found out a:

VERY IMPORTANT FACT

He advised me that if we transfer to anyone we must make sure the tenant/a are paid up in advance and not behind in rent. If they behind, even by one day, the insurer will take our money but if and when we claim, not pay out as invalid!.

It is an out they all use.

I suggested we shoudl get him to give us a statement when we transfer which he said was wise. He said inurers call them to get a record of the payments at the time.

I didnot ask if the once they get ahead this clause closes but I woudl asusme no, it is an out and they will use it.

FYI

Peter 14.7

 

[Peter 14.7]

i have received my renewal notices for the IP and PPOP insurance.So have been busy getting new quotes to compare. now problem is i am with Aami and they give a unlimited property replacement and don't ask for a rebuild cost, so when seeking new quotes all are asking for a rebuild cost and using there calculator it comes up with amounts varying from $530k to $620k for the PPOP which is way over.My estimate would be $350-380k - its a 5x2 i estimate 200m2 living space, double brick, solid timber floor through out and recently had a reno job done.The land size is 730m2 in perth. and recently valued at $490-$520k.
based on these high figure i am getting excessively high premiums, if i use my figures i get a 15% lower premium than with AAmi.

Any ideas which figures i should use.will ,i by using my figures be disadvantaged in any way with the standard LL insurance policy.

AAMI dont cover cleaning and dont allow you to use the fbond for cleaning, they say you must use it for unpaid rent first. As most bad tenants leave at least 4 weeks cleaning is a cost to you.

My solution is to offer a weeks free rent if the house is really bad. A good tenant will clean anyhow and bad tenant will only return it to the bad state again.

Peter 14.7

 

[Tillie]

Guys, if property is self-managed, do EBM or anyone else cover landlord insurance. Assume, you have your brother as tenant.

EBM landlord insurance covers self-managed properties. Also I heard rumours today that Terry Sheer will change their policy in November and after that they will cover private landlords as well.

 

[Beau Miller]

I am also interested in this. I have been ringing back and forth between insurers regarding insurance for units part of a body corporate. Terri Scheer provide pretty good rental default, public liability, certain contents etc for $360 (NSW) but do not cover building. My body corporate insurance will only cover common property. What sort of insurance would I be looking at to cover things like: hot water tank, stove, air-conditioner etc I'm not too worried about the walls or floor as it is solid brick and tiled throughout.

I use Terri Scheer for Landlord Protection and I know that they do offer a seperate Building Insurance but the price per annum depends on the house details... You can phone 1800 804 016 for a quote.

 

[emperth]

Cgu

After reading this, I have realised we are paying way too much for our landlord's insurance with CGU - $1200 a year. Going to look at switching to Terri Scheer or EDM... Thanks guys.

 

[Peter 14.7]

My experience is insuracne is somewhere you dont want to scrimp and you get what you pay for.

I just has to repair $30,000 worth of damage with one tenant. I was with a major and it was very very hard. At one point they were refusing everything.

FYI Peter 14.7

 

[theperthurbanist]

Also I heard rumours today that Terry Sheer will change their policy in November and after that they will cover private landlords as well.

Confirmed. Terry Sheer now do private landlord's insurance as a different policy.

 

[ChrisA1]

Loss of rent - Terri Sheer policies

Hi all

Long time reader, first time poster; many thanks to everyone for the fantastic advice/comments on this forum.

I am continuing this topic as I am looking for landlord insurance for an apartment and house that I am about to settle (2 new policies in total).

After reading many positive recommendations about Terri Sheer, I called for a quote, which was quite competitive, however, alarm bells started ringing when they said that loss of rent was only covered for 6 weeks.

In 2010, a tenant in one of my apartments had a dryer fire (make sure the lint filters are always clean!) and after being a squeaky wheel for 8 months, the apartment was ready for re-letting (I knew when it happened that it would be a long process....). The one good thing is that loss of rent was paid for the whole 8 months without a hitch. My concern with the Terri Sheer policy is that under the TS policy, only my first 6 weeks of rent would have been paid, then 6 months of eating bread and water.....


My other question is when looking for landlord insurance for apartments, I have read suggestions choose the company who insures the building (QBE in this case) so if a claim is put in, the company has to decide whether the claim is being paid under the building or landlord insurance arm rather than 2 insurance companies hand-balling the claim to each other with no eventual resolution.


Appreciate any comments/thoughts here.

Cheers,

 

[missgreeneyes]

Hi all


In 2010, a tenant in one of my apartments had a dryer fire (make sure the lint filters are always clean!) and after being a squeaky wheel for 8 months, the apartment was ready for re-letting (I knew when it happened that it would be a long process....). The one good thing is that loss of rent was paid for the whole 8 months without a hitch. My concern with the Terri Sheer policy is that under the TS policy, only my first 6 weeks of rent would have been paid, then 6 months of eating bread and water.....


My other question is when looking for landlord insurance for apartments, I have read suggestions choose the company who insures the building (QBE in this case) so if a claim is put in, the company has to decide whether the claim is being paid under the building or landlord insurance arm rather than 2 insurance companies hand-balling the claim to each other with no eventual resolution.


Appreciate any comments/thoughts here.

Cheers,

Who did you insure with, who paid you for 8 months?

About insuring with the same company as the strata - I see your point. However, not that many companies do strata insurance. I think it's limited to a handful, and CHU is one of the most popular. My strata is insured with CHU (underwritten by QBE I think). My LL insurance is with AAMI. I can't imagine that, in a block of say 100 apartments, all owners woud go with the same LL insurer....

Yes Terri is pretty skimpy. you get what you pay for.

 

[brettc]

Hi all

Long time reader, first time poster; many thanks to everyone for the fantastic advice/comments on this forum.

I am continuing this topic as I am looking for landlord insurance for an apartment and house that I am about to settle (2 new policies in total).

After reading many positive recommendations about Terri Sheer, I called for a quote, which was quite competitive, however, alarm bells started ringing when they said that loss of rent was only covered for 6 weeks.

In 2010, a tenant in one of my apartments had a dryer fire (make sure the lint filters are always clean!) and after being a squeaky wheel for 8 months, the apartment was ready for re-letting (I knew when it happened that it would be a long process....). The one good thing is that loss of rent was paid for the whole 8 months without a hitch. My concern with the Terri Sheer policy is that under the TS policy, only my first 6 weeks of rent would have been paid, then 6 months of eating bread and water.....


My other question is when looking for landlord insurance for apartments, I have read suggestions choose the company who insures the building (QBE in this case) so if a claim is put in, the company has to decide whether the claim is being paid under the building or landlord insurance arm rather than 2 insurance companies hand-balling the claim to each other with no eventual resolution.


Appreciate any comments/thoughts here.

Cheers,

Are you rent your property out direct or through an agent? Terri Scheer has two separate policies depending on whether you go through an agent or not, I'm not overly conversant with the direct policy but it certainly appears far more restrictive than the one for professionally managed properties.

The fire claim you are referring to would presumably have been paid under the "defined events" section of the policy (as opposed to tenant-damage), and most policies have far greater limits than 6 weeks for that type of loss, certainly our RentCover policy would generally pay up to 52 weeks for defined events losses.

As for whether to use the same company as the strata insurer, it's far more important to use the best landlord insurance policy rather than possibly compromise on that. At the end of the day there are arguments both ways so Iwould certainly not base my decision on who the strata insurer is.

 

[Peter 14.7]

Who did you insure with, who paid you for 8 months?

About insuring with the same company as the strata - I see your point. However, not that many companies do strata insurance. I think it's limited to a handful, and CHU is one of the most popular. My strata is insured with CHU (underwritten by QBE I think). My LL insurance is with AAMI. I can't imagine that, in a block of say 100 apartments, all owners woud go with the same LL insurer....

Yes Terri is pretty skimpy. you get what you pay for.

It is sooo hard.

We moved form AAMI to Terri Scheer because after three claims with three tenants with AAMI each time was Hell.

We have not claimed with TS but our agent says they and EBM is the best as they allow you to use the bond for cleaning. AAMi does not. Be careful with AAMI the customer service is 0% and I am not exaggerating. Only through persistence did we get what is due and ALWAYS email confirmation of what you said as they will deny it next time.

FYI we put both house and tentant with TS to avoid and arguement on what is what.

Lastly, dont skimp here. Really don't. and use and Agent.

Our last eviction the tenants came with the house we bought in 2007 and was always behind here and there. Each time we went to evict he found some cash. usually some poor girlfriend coughed up.

Anyhow, when we did evict, with the cops at the door, he literally opened the door and proceeded to smash holes in the remaing walls in front our agent to press a point.

Our only satisfaction is he was then stupid enough to go the 6ft copper. Needless to say the copper won and he was charged with assaulting policeman.

The damaged caused $30,000! Yes!!!

All tenants can go bad. With the present down turn things are even more likely.

Regards Peter 14.7

 

[brettc]

That's expensive compared with Terri Scheer. We have 2 policies in Qld with Terri Scheer and they are $255 pa each! But we don't get to "choose" coverage as you describe here, so may not be comparing apples with apples (or policies with policies )

The $255 for Terri Scheer is referring to a landlord policy and contents only. Musashi's premium included $310K building as well, so a completely different policy. With Terri Scheer you would need to add a building policy to the $255 landlord policy.

 

[missgreeneyes]

I just had a closer read of my AAMI pds.
They cover for 12 weeks loss of rent max.
Suncorp cover for 52 weeks.
I might change to Suncorp now, and if anything better comes up, change again. It costs hardly anything to switch.