Do you have Landlord Insurance?

[hugh72]

Only if it could cost me lots of money. So my car is third party property only. So if I cause a crash, I could lose my car plus $1000 excess, but that's it, nothing that could ruin me financially.
For holidays, I try and book with a credit card that gives me travel insurance, but I'm really only interested in the medical insurance part. If I lost my passport and had to rebook flights, etc, it again wouldn't be a life changing amount of money.
Health insurance, yes, I've got decent hospital cover, but few extras.
I've got home and contents insurance for my PPOR as well, but I don't have silly things like pet insurance or anything of the kind. Nor do I have life insurance, if I die my fiance can sell all my IPs and have the PPOR pretty much debt free. Might not be as much as some other widows would get, but for a girl in her mid/late 20s, it's fine. I might change this once we have children, depending on the portfolio value then.

So you have no public liability cover?

 

[Brady]

Only if it could cost me lots of money. So my car is third party property only. So if I cause a crash, I could lose my car plus $1000 excess, but that's it, nothing that could ruin me financially.
For holidays, I try and book with a credit card that gives me travel insurance, but I'm really only interested in the medical insurance part. If I lost my passport and had to rebook flights, etc, it again wouldn't be a life changing amount of money.
Health insurance, yes, I've got decent hospital cover, but few extras.
I've got home and contents insurance for my PPOR as well, but I don't have silly things like pet insurance or anything of the kind. Nor do I have life insurance, if I die my fiance can sell all my IPs and have the PPOR pretty much debt free. Might not be as much as some other widows would get, but for a girl in her mid/late 20s, it's fine. I might change this once we have children, depending on the portfolio value then.

Having to worry about selling investment properties to pay off debt and still have a mortgage at the end to worry about, be it small. No thanks I would want to have at least PPOR paid off and extra funds no to worry about working for fair while.

It's ok to assume that the remaining partner could afford to continue to repay debt, but you are talking about after losing a loved partner returning to work to pay the bills. Not always emotionally possible etc

 

[spludgey]

So you have no public liability cover?

Yes, it comes with the building insurance.

Having to worry about selling investment properties to pay off debt and still have a mortgage at the end to worry about, be it small. No thanks I would want to have at least PPOR paid off and extra funds no to worry about working for fair while.

It's ok to assume that the remaining partner could afford to continue to repay debt, but you are talking about after losing a loved partner returning to work to pay the bills. Not always emotionally possible etc

That was probably a conservative estimate of mine, I would expect the IPs to clear all the debt, but thought I'd err on the side of caution.
Or she could just keep the lot and change the PPOR to IO, that way she'd end up with money in her pocket, plus after 5 years rents will have increased and should be able to pay off the principle as well.

 

[roypropertyinv]

For the sake of $255 per year versus the potential bill of who knows what,but many many thousands of dollars(and i have been there) i see it as a small cost of doing business.

I concur

 

[roypropertyinv]

Insurance companies make money by insurances costing more than they pay out. So on average you're better off by not being insured. Obviously you still want to safeguard against events that could ruin you though.
So I would rather face the prospect of potentially being out of pocket a few thousand dollars than paying over $2k (multiple properties) a year in insurance.

Obviously everyone has to decide this for themselves, but this is how I see it. And I don't play lotto or gamble (unless the odds are in my favour) for the very same reason.

I agree with the principal of what you are saying, but the risk and reward of insurance policies cover thousands of clients.

When I get to the number of properties (I estimate 10 properties @ $250 per year) where the cost of insurance outweighs the (anticipated) cost of repairs etc from one bad tenant, I will self insure, until then, I'll pay a third party to insure me.

 

[joanmc]

As the majority of my properties are welfare dependent tenants I do have insurance, but I have only had to claim on it twice and they were doozies. Lots of damage and weeks and weeks of lost rent. I am happy as it gives me SANF. Where I invest I think you would be crazy to not have it.

 

[Biz]

Out of interest where are you guys getting LL insurance quotes for $250? Whenever I have looked mine have always been between $350-$500 and my properties are not in "dicey" areas.

 

[datto]

In the Druitt an IP and LL insur go hand in hand. Makes me sleep easy at night.

Just driving past my IP now. WTF is that truck doing in the driveway? Arrrrrr...they're doing a runner and they promised to pay everything by Friday.................

 

[jackbak]

It depends where your property is and how good your agent is. Mine are blue chip areas and never had an issue with tenants (touch wood). I estimate I've saved well over $5000 in premiums.

 

[thatbum]

Insurance companies make money by insurances costing more than they pay out. So on average you're better off by not being insured. Obviously you still want to safeguard against events that could ruin you though.
So I would rather face the prospect of potentially being out of pocket a few thousand dollars than paying over $2k (multiple properties) a year in insurance.

Obviously everyone has to decide this for themselves, but this is how I see it. And I don't play lotto or gamble (unless the odds are in my favour) for the very same reason.

I completely agree with this. I don't roll with LL insurance, or most forms of insurance for the same reasons. Health insurance being the notable exception.

I essentially see most forms of insurance as betting to lose, with the odds stacked against you by the insurance companies.

The odds of needing LL insurance, and being able to use it effectively is probably a lot lower than most people realise. You're much better off learning how to manage tenants better, or paying extra to find someone who manages tenancies better for you.

 

[hugh72]

I completely agree with this. I don't roll with LL insurance, or most forms of insurance for the same reasons. Health insurance being the notable exception.

I essentially see most forms of insurance as betting to lose, with the odds stacked against you by the insurance companies.

The odds of needing LL insurance, and being able to use it effectively is probably a lot lower than most people realise. You're much better off learning how to manage tenants better, or paying extra to find someone who manages tenancies better for you.

So what would you suggest when a tenant informs the PM that they have slipped and injured themselves requiring surgery and will be off work for some time?
The next week you receive paperwork notifying their intention to make a claim

 

[jim1964]

out of interest where are you guys getting ll insurance quotes for $250? Whenever i have looked mine have always been between $350-$500 and my properties are not in "dicey" areas.

ebm...............................

 

[Biz]

ebm...............................

Thanks.

Got a quote online though and it worked out to $301.

DAT $51!!!!

 

[jim1964]

Got a quote online though and it worked out to $301.

I just rang up and did it that way,we do have existing properties with them,but they didnt mention any discount

 

[joanmc]

terri scheer $298/property same price for the dodgy area ones as the nice area one

 

[Biz]

terri scheer $298/property same price for the dodgy area ones as the nice area one

Interesting, just tried it online with all mine and it came out to $365, $345 if you have more than one.

 

[jim1964]

terri scheer $298

My Terri Scheer one was $295,thats why i went back to EBM

 

[Richard Feynman]

Yeah.

Tiny (deductible) cost, potentially massive risk.

I think LL insurance is a worthwhile investment.

 

[thatbum]

So what would you suggest when a tenant informs the PM that they have slipped and injured themselves requiring surgery and will be off work for some time?
The next week you receive paperwork notifying their intention to make a claim

I'd call their lawyers and explain I wasn't accepting liability and to expect my defence paperwork shortly.

Because I know the hurdles a plaintiff has in bringing such a claim are significant. Just because someone was injured in my property doesn't make me liable.

The whole insurance industry thrives on over-inflating the likelihood and impact of insurable events happening.

Shrug, I suppose it helps that I have experience in both personal injury and insurance law.

 

[hugh72]

I don't have experience in either other than being on the receiving end of a professional tenant with a dubious claim which was settled, it certainly opened my eyes to what could happen without appropriate cover