EBM insurance offering 2 months free

Discussion in 'Property Investment - Other' started by tess85, 1st Jun, 2012.

  1. tess85

    tess85 Addicted to SS

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    If you google "EBM insurance" and click on their google ad, or use the promo code webpromo1, you get 2 months free.

    My EBM insurance was up for renewal with no discount. While shopping around I noticed I could get 2 months free by going to their website and signing up again...

    Seems like it's better to be a new customer than just to renew!

    I have no idea when the online offer ends, but thought it might be handy for those of you who have LL insurance that needs renewing.
     
  2. Non65

    Non65 Member

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    :( I just renewed mine with them. But will keep in mind as I am hoping to buy in next couple of weeks. Thanks Tess85.
     
  3. JWR

    JWR Member

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    Damn - just bought/renewed 3 with them!

    Will be on the phone getting my discount one way or another though....!
     
  4. jackbak

    jackbak Member

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    Dont really know about their insurance but I used to be a supplier of theirs and they are one of the most professional company's I have ever dealt with and Ive only ever heard good things about them from others.
     
  5. Non65

    Non65 Member

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    Let me know how you go with getting your discount JWR, I might give it a try too.
     
  6. JWR

    JWR Member

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    Worth a try - the worst they can say is no!
     
  7. tess85

    tess85 Addicted to SS

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    Good luck! It is annoying when they treat new customers better than old. I get that all the time with my health insurance too. They frequently offer 1 month free only to new customers... I actually alternate my health insurance every year between the 2 major providers...

    Incidentally I had a minor claim paid out this year with EBM (<$300) and they were nothing but professional.
     
  8. womble66

    womble66 L plates firmly afixed

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    thanks for the tip, mine was due for renewal but I had not yet paid so applied again online and save $185. covered my subscription fees for this forum for many years (tic). thanks.:D:D:D
     
  9. womble66

    womble66 L plates firmly afixed

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    Thats exactly what they said.......No. Applied online and got my quote to save $185 only to get an email from EBM saying discount only eligible for new business.

    Stupid thing is every renewal from my point of view is new business to them as I could always opt to go somewhere else. For EBM it seems that would rather loose a customer than offer a further discount that is equivelent to that offered to possibly to attract a new customer.

    For my car I use GIO and each year I renew with anew policy to save 10% for the online policy.

    Time to shop around.:confused::confused::confused:
     
  10. jroth

    jroth Member

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    Strange, when I google EBM insurance the only Ad shown is for NRMA Insurance.

    Edit: Nevermind when I googled EBM Landlord insurance it came up.
     
  11. brettc

    brettc Member

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    Offering a discount for new business is simply a way of trying to attract new business by making you stand out from the rest (of policies). The thing we (EBM) are faced with is trying to combat the massive advertising budgets of companies such as NRMA, AAMI etc. We know that the product (RentCover) we have is exceptional, is competitively priced, and most importantly the service that is received, particularly when it comes to claims, will stand out and create loyalty. We know that and I’ve been around for over 20 years to see it.

    The problem is that too many people will see the big names and figure that will ensure them the best product etc., rather than going with the products that have been truly designed from the ground up for landlords, as opposed to starting with a standard household policy and trying to adapt it to suit landlords.

    RentCover from EBM is a product that has always been priced very specifically based on claims and with a view to sustainability. The excellent track record when it comes to claims is no accident, the pricing has been done to ensure there is an adequate premium pool to pay claims without trying to screw people (to use the technical term). If that price reduction was sustainable throughout the life of a policy then the premiums would simply be set cheaper, but it’s not.

    The 60 days free is essentially a loss leader, it has been used many times by us over the years in different situations to encorage new clients. Like many businesses in other industries we make the decision that to get new customers to get a taste of our product we are willing to take a “hit” in the first 12 months, knowing that the vast majority will then remain with us for many years at the correct premium. It’s similar to a supermarket that offers some lines below cost so that you then purchase full priced products, could they sell all their products below cost? No, as they would go broke. Similar to a landlord that offers two weeks free rent to get a new tenant. Will they give them another 2 weeks free when they sign a new lease? Unlikely, they still need to make a profit. Unless of course the “normal” price is in fact overpriced.

    With insurance you need to build a certain premium pool to be able to sustain losses. Within that there are some good years and some bad years, but at the end of the day if it is well managed there is enough money in it to keep the insurer liquid and pay claims fairly and promptly. If it was possible to reduce all RentCover premiums by 16%, we would do it, but it simply isn’t, that is if policy holders wish to get claims paid, and in the last 12 months alone over $12 million has been paid out. RentCover is a well managed product which is largely the reason we have had the same insurer for over twenty years (Mercantile Mutual originally who were bought out by QBE). Compare this to other products that have had to jump from one insurer to another, which is always a bad sign, consistency is the key.

    In this case we have permission from the insurer (QBE) to offer a discount for certain promotions for the first twelve months, we don’t have permission to offer it to existing policies, many of whom by the way will previously have received the 60 days free on their original policy anyway. Under the binder agreement we have, it’s simply not something we are permitted to do. I guess something that most people wouldn’t realise is the amount of work that actually goes into setting premiums and ensuring that a product remains viable. It’s a complicated process that is done by minds far better than mine, but it’s vital if you want fair claim settlements when you really need it. That said we go to bat for landlords every year to ensure the premiums are kept as low as possible.

    I personally introduced the 60 days free, including the current campaign. The reality is, if we were to try to apply it through every policy on renewal, the policy wouldn’t be around in two years time, which really wouldn’t be good for anybody. But the bigger we can make the premium pool in the meantime the more resilient it is to disasters, and the long term effect is keeping premiums down for everybody.
     
  12. tess85

    tess85 Addicted to SS

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    I got this email too. Apologies to any Somersoft posters I have inadvertently misled. I specifically double checked the terms and conditions BEFORE posting on Somersoft. EBM doesn't seem to be honouring the 2 months free, it does not say for new business only on the google ad.

    Secondly, on the EBM website it just says "Apply Online for 60 Days Free! Get an instant quote now (60 days discount applicable to RentCover Ultra and RentCover Platinum only)"

    I have quoted directly from EBM's website, I fail to see how this says restricted for new business.

    I am an actuarial analyst working in general insurance, soon to qualify as an actuary. Believe me, claims triangles, calculating outstanding claims liabilities, and modelling premiums are what I do all day long! I agree with everything you say but my gripe is about false advertising of the 2 months free being for "RentCover Ultra and RentCover Platinum only".

    I have 3 IPs with EBM. Because we haven't been receiving some mail lately, my last letter from EBM said "Your policy will be cancelled within 14 days of the date of this notice. Date of notice: 15.05.12". Accordingly I was only looking to sign up to EBM online (on 1.06.12) because I thought my policy was already cancelled. Turns out I'm still old business despite my policy being cancelled and therefore not eligible for the discount. Never mind, I think Terri Scheer will be happy to have my new business...
     
  13. brettc

    brettc Member

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    Hi Tess

    Thanks for pointing that out, it is certainly an oversight which I will have corrected, I can only imagine you can understand the logic in something like this and despite trying to cover everything off this is one we've missed. To be honest, thank you for alerting me to it as by no means is there an intention to mislead. We've actually done 60 days free for years via certain real estate agents and never had an issue so I wanted to find a way to get it to direct clients and try to stop the seepage to some of the major insurers who are not offering policies of a similar standard.

    To be honest the last thing I want to see is to have to remove the offer from direct clients, but I will certainly cover it off within the application process so that there is no misunderstanding.
     
  14. matto_

    matto_ Member

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    Thinking about changing insurance at the moment.

    Basic Q - has anyone got a simple spreadsheet they have used to assist in the "selection process"?
     
  15. tess85

    tess85 Addicted to SS

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    Thanks Brett, didn't realise it was meant to be new business only, glad the oversight will be corrected as it certainly created some confusion for me.
     
  16. womble66

    womble66 L plates firmly afixed

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    All good and I communicated the same issue to the EBM Exectutive Accounts Manager when I got the email response.

    To Brett's credit the EBM website has been updated to reflect this previously unstated policy of being only for "new business" and I appreciate with the info regarding the sales strategy.

    I like you at this stage will opt out for the LL part and go with TS when my renewal is due then shop around next year when hopefully I may qualify for some discount. My building insurance will go with the best value for money until then as well.
     
  17. sahi

    sahi Member

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    I checked the EBM website, didn't find any reference to the 2 months free promotion, is it still on?
     
  18. mrmonopoly

    mrmonopoly Hunter James Buyers Agent

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    Pretty certain its an ongoing thing, give them a call. FWIW I have numerous policies with EBM and have found them to be hands down the best from an investors perspective.
     
  19. TMNT

    TMNT Member

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    I used the code as recently as about 8 months ago, is the code still avaialble??

    I just tried online and the box to enter the code seems to have disappeared ;(
     
  20. brettc

    brettc Member

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    I'm seeing it as still there, it is listed as "Promotional Code" on the application page immediately beneath "Where did you hear about this product?". You can just type "Somersoft" in there and the discount will be applied when you get your invoice. Is this what you were referring to?