Burnt into bankruptcy

[emu]

After reading a article in this months API mag (insurance claim for damage) i did some checking with my insurer and found that if one of my tenants intensionally burnt down the property they were renting i would not be insured (unless it was accidental).

So after contacting some insurance brokers, i received several quotes which cover intensional acts (lots of escape clauses about arson) at a hefty price.
Building 300k
Liability 10 mil
$1900 pa

Ok the IP is commercial with residental upstairs 2-2 brm flats, what happens if one tenant decides to burn the property to the ground and worst case senario is that the tenant next door doesn't get out in time?(smoke detectors are hard wired)

The premises downstairs is involved with 11-17yr olds who frequently hang around and there has been one situation where a fire has been lit on a back window (which thankfully didn't take).

What type of insurance cover and extras do the people of this forum take out on their IP's?

Any help would be appreciated.

 

[Ricardo29]

landlords policies have available sections:
deliberate/intentional damage, and malicious damage/vandalism.

which an insurance broker should always advise you about.

direct policys ie. ringing some insurer on the phone and getting a cheap policy in 5minutes... are not worth the paper theyre written on. the person on the phone doesnt know, and whats more they wont "advise" you.

the sections above are minimal costs. the cost is in the liability. then the building. then add on such as these sections are often only $50 or so. worth it!!

 

[Ricardo29]

insurance

emu..
i should point out im an insurance broker.
$1900 seems reasonable. commercial property rated much higher than domestic.
happy to answer any related questions from yourself and others.
perhaps post under "insurance" so i can see easily enough.
rgds.

 

[outthereandy]

landlord insurance

this is not an ad for them but try AAMI they have landlord insureance for malisious damages