Changing Insurance Companies

Just curious as to what happens if I change insurance companies. I purchased a property a few months ago and everything was rushed so I just went ahead and got my building and landlord insurance through my bank. I've since read the bank ones aren't that great and Terri Sheer is a good company to go through, so I think I'll change. The building insurance is pretty simple as it's obvious at the time a building burns down for example, but the landlord insurance, how will that work? My agent does six monthly inspections. If I change my insurance midway through an inspection period, and damage occurs can the insurance companies both refuse to cover me as I can't be sure exactly what time the damage took place? So should I not change over until straight after an inspection so I know for sure no damage has been done up to the date of changing over?
 
Interesting point. I wouldn't be surprised if you did have to prove exactly when the damage occurred. If you are worried about it, you can always make sure there's a day of overlap and ask the property manager to carry out another inspection on that day, just to cover all bases.
 
Yes, property inspections are carried out by they cannot be totally thorough as stains or damage can be hidden by furniture. I mean, a PM can't be expected to move that new bookcase to see if it is hiding something.

Probably the safest time to change over is when the tenant changes. That way there can be no doubt as the property will be empty and thoroughly inspected for the exit report.
Marg
 
Just rang Terri Scheer to get an answer to this question as I was finally thinking of getting around to changing it. She couldn't even give me a straight answer... kept saying if the damage occured during the time of the old insurance policy that company covers it. No *****! Where I am confused is if, you can't prove WHEN it occured i.e. you take out a policy some time between inspections. :confused:

My own conclusion, just wait until the next inspection and ask my property manager on the day if it's all ok and change THAT day. Surely this is a common event, I can't be the only one who changes their landlord insurance?? Or do I just worry and think too much? :(
 
As I said, I really recommend that you wait until the present tenant leaves. That way you will have a thorough exit report that will state the condition of the property accurately.

Otherwise you will have problems in the event of a claim. Periodic inspections are far more cursory and tenant's possessions can hide damage.
Marg
 
Thanks Marg, I'll run with your advice. The tenants I have I think are really good, so hopefully won't ever have to make a claim against them. I've just since read that the bank insurance policies (which is what I took out because I was too busy at the time to look around and they offered) aren't that good so I hope my current tenants are as good as I think they are. It's a lesson though to get the landlord insurance policy right from day one, take out a dud one as a last minute rush with the thinking you can change it, but have a tenant stay there for 5 years could end badly.

I just found it odd that Terri Scheer couldn't even give me an answer, in fact the woman I spoke to sounded really unsure of anything!
 
As I said, I really recommend that you wait until the present tenant leaves. That way you will have a thorough exit report that will state the condition of the property accurately.

Otherwise you will have problems in the event of a claim. Periodic inspections are far more cursory and tenant's possessions can hide damage.
Marg

But for such damages you most likely won't need the insurer you'll take their bond, To get money from the insurer you'll have to prove that it was malicious damage
 
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