building insurance qld

[spooky]

Hi all

Can anyone enlighten me about some new qld state laws that the minimum you can insure an investment property for is $177,000

My wife has today been in contact with AAMI our usual provider and attemted to get a quote for buildings insurance for $140,000 which is a bit on the generous side they said the minimum it could be insured for was $177,000.

This means that when I settle at the end of the month the block of land that they value to be $14,000 ( total purchase price $191,000) will have an immediate capital gain of 233%

 

[Sunstone]

Dear Spooky,

Never heard of such an issue.

Just settled on my latest today and had the insurance policy taken out last month.

Talk with Suncorp for QLD and come back to me if they tell you the same story.

Cheers,

Sunstone.

 

[sandor]

Hi Spooky

I had a similar story with AAMI. I wanted to insure it for $170,000 but when I told them how many bedrooms were in the house, what was the house made of, etc, they calculated that the replacement value would be $300,000 and they would not insure it for anything else. So I insured it with another company instead.

 

[Sim]

Sounds like some type of plan to try and avoid having people "underinsured" - as a large percentage of properties seem to be. Not a bad idea in theory - but in practice these blanket approaches tend to just end up being a money making exercise.

 

[spooky]

Yes every one it is AAMI.

I would like to be one of there accredited builders as in my case they would get about $40,000 dollars in there back pocket.
It's not as if the building is fourty years old and we not quite sure how much it might cost to rebuild. I just had the place built for $120,000 I'm sure it would cost less than $10,000 to buldoze the block after a catastrophic event.

The said it is their policy to have there own builders re build it and their builders charge X amount.
They wont give you the pay out figure for what you insured it for in the first place.

Therefore you cant negotiate with another builder or even the original builder for that matter to get the best deal for youself.