Dual Occupency Insurance (again!)

[Yorkshire]

Hello!
Hopefully we will soon exchange on our very first IP ! It has a dual occupency, house plus cabin. The cabin, like many others in the area does not have council approval. I was very pleased to read read Crystal's post:

My original insurance company would not cover a dual occupancy. I researched my options and have used an insurance broker who obtained insurance with CGU for my non council approved granny flats with full disclosure.
Cheers,
Crystal

but I just spoke to CGU insurance & they will not touch a cabin which does not have council approval. Do I have to go through an insurance broker to get this (!!) or should I have called it a “granny flat”? Does it make a difference calling the “Cabin” a “Granny flat” ?? Can any one let me know the name of a sympathetic insurance broker who may be able to help?

Also REI Insurance have told me that as the cabin & house are on separate leases I have to pay 2 lots of Landlord Insurances i.e. 2 x $300. Any comments?

THANKS!
Yorkshire

 

[sctpc]

Yes I got court with the same problem verry frighting its called CGU Landlords Residential insurance But they say it can not be under 15 or over 50 years old and i had to pay council
???thing??? sorry it dont say ask your solicitor It states (no building notices or orders are outstanding against this property) and ( standard of habation orders - Nill) then they gave me insurance.
but you should contact your council and ask them now to get the permits for your benifett

 

[Yorkshire]

Hi SCTPC!
Thanks for your prompt reply! Sorry to be so dim but I didn't quite understand your reply!

Is it the main house or the cabin (or both?) that can't be under 15 or over 50 years old?

Did you have to pay council to give you a letter for the insurance company saying that:
"no building notices or orders are outstanding against this property and standard of habation orders - Nill"

What are: " the permits for your benifett " ?

Again, thanks for your help - I'm so new to all this & as you say,
very frightened!

Yorkshire

 

[sctpc]

The one with no permit its called right of tenya or somthing.

my council charged $30 but I have only given you my situation I would ring your solicitor and council asap as if its not insured by setalment your bank may not go ahead with the payment

and i meen now it took me 55 days on a 60 day setalment to fix it up so there is no time to loose

 

[phm]

Hi Yorkshire.

Congratulations on your "very close to" first IP. I would be checking with my solicitor BEFORE speaking to the council. There may be legal aspects that haven't come up yet.

Good luck. I know exactly how you are feeling. I'm looking forward to being able to write that sentence, "I've just bought an IP", and everyone who has also done so, will know exactly the amount of work it has required, just by that little sentence!

 

[Crystal]

Hi Liz,

Congratulations on your (future) purchase of a dual occupancy. Don't be nervous, if you're properly insured with full disclosure, there's nothing to be worried about.

My "Landlord Residential Property Insurance" is around $500/year with CGU.
Comments on my insurance schedule quoted below....

"The property is a dual occupancy residence - council approval not sought"

Therefore, full disclosure!
Please be nice to your future neighbours so they don't dob you in to council.

Hope this helps,

Crystal

 

[darryl]

On the subject of cgu insurance one thing to watch is that they charge excess on each part of the claim ie once for missing rent and again for tenant damage even if it is lodged on the same claim. Ring them and check.

 

[Sunstone]

Dear Yorkshire,

Council approvals are worth their time to get. They are put in place for a reason and you will do well to learn the regulations in your area.

Valuers legally are not allowed to increase a valuation on an IP based on a non-council approved dual occupancy. This is something to think about.

Insurance companies will use every loophole under the sun to avoid making a payment when you need it, and non approved constructions do open up a can of worms.

Cheers,

Sunstone.