excess for landlord insurance

[giraffez]

I was wondering how insurance excess usually work? I have taken out insurance with one of the big 4 banks and I have been told by the person handling my claim that the excess is paid per damage item.

So if i had 5 spots in the house that has malicious damage, I need to pay 5 lots of excess. This doesn't seem right, I thought its one excess to cover all malicious damage.

 

[Goofy]

don't take out insurance with anyone else except those who specialise in landlord insurance.

The main ones are Terri Scheer, EBM, I use Pi-Plus which is the best value ($259pa with 2 months free) and no excess on claims. Not sure if it needs to be managed through an REA though.

 

[mystery]

We made a claim for property damage a few months ago on one of our IP's. We had about $16,000 worth of total damage.

NRMA withheld the agreed excess for our building damage claim, contents damage claim and 4 weeks rent for the rent loss claim whilst our property was being repaired. So for each of the three claims they withheld the agreed contract excess amount as per our policy.

My understanding is that you don't pay an excess for each individual item claimed (like doors, walls, curtains etc), but whether your claim/s is for damage to building, contents or rent loss.

It sounds like the person at the bank and yourself have misunderstood each other. You should have been issued with an information booklet when you took the insurance out .... go through that. If you didn't get one, go back to the insurer and ask for one.

Mystery

 

[giraffez]

don't take out insurance with anyone else except those who specialise in landlord insurance.

The main ones are Terri Scheer, EBM, I use Pi-Plus which is the best value ($259pa with 2 months free) and no excess on claims. Not sure if it needs to be managed through an REA though.

I saw the two month free deal a while ago for Terri scheer do you know whether it's still on?

The booklet with the policy is very vague with the excess component, to the point it can be argued both ways. It doesn't make sense if it's charged per item, if this is the case no one should bother with taking it out because it ends up too costly!

Do I pay for the invoice first and get the insurance company to pay me back?

 

[Sez]

different insurance policies operate in different ways. Some insurance policies have a cap so say there is malicious damage in the lounge room, master bedroom, kitchen, ensuite and 3rd bedroom. This is 5 separate counts of malicious damage, some insurance agencies have a cap of how many times your excess is applied and may charge you for only 3 separate instances while other insurance agencies WILL charge you an excess for all 5 counts of malicious damage.

As to whether you pay the trades and make your claim against work done or you have the insurance company arrange trades and you pay them the excess OR you arrange trades and have the insurance company pay the trades direct is up to you and your insurer.

Landlords insurance should DEFINATELY be taken out. If you have an excess of $200 per item which costs $1000 to repair you are far better off with the insurance, also, you decide what to claim on insurance and what you don't, compare your excess to the repair costs and make a call. I have seen several landlords end up out of pocket due to the same thought process as what you have mentioned. They all end up taking out insurance after a really bad situation.

I do not know if terri scheer still has their two months free, give them a call and also compare with another agency which specialises in landlords insurance, compare not only the cost but the COVER, make sure you are well covered and you understand your policy. Ask them any question you can think of so you are well informed when going ahead with it all.

 

[Rixter]

The main ones are Terri Scheer, EBM,

AON Landlord Insurance is another main player.

I use Terri Scheer & AON. Never had a claim via Terri Scheer but have had a couple claims through AON. No drama's what so ever.

 

[giraffez]

thanks everyone. Personally i think insurance companies that charge excess per event are just rip offs. If a tennant wants to maliciously damage your property, they obviously won't just damage one thing. Problem is, if they damage minor things but lots of it, you probably end up paying for everything out of your own pocket as the excess would be higher than the repair. Everything may add up to thousands of dollars.

Don't get me wrong, I support getting landlord insurance and wouldnt consider going without it, its just avoiding the sneaky insurance companies that just goes for $$

Has there been reviews done on landlord insurance companies and which one comes out on top?

 

[giraffez]

As to whether you pay the trades and make your claim against work done or you have the insurance company arrange trades and you pay them the excess OR you arrange trades and have the insurance company pay the trades direct is up to you and your insurer.

My problem is that my insurance is taking their time in getting back to me. I've submitted all my quotes and it almost feels like its just sitting idle in someone's inbox. Verbally they have agreed to the items but they won't give me anything on paper. Some items i'm not even sure are covered as they won't give me a response.

Its nearly 3 weeks and my property needs to be fixed up, i keep hassling them for a response but nothing. I've initiated the trades and pay them out of my own pocket and will send them the invoice to be reimbursed.

I don't want to complain in the fear they will get pissed and reject all my damages and give me hell on the final claim amount.

 

[Mick C]

I was wondering how insurance excess usually work? I have taken out insurance with one of the big 4 banks and I have been told by the person handling my claim that the excess is paid per damage item.

So if i had 5 spots in the house that has malicious damage, I need to pay 5 lots of excess. This doesn't seem right, I thought its one excess to cover all malicious damage.

Hi,

You only pay ONE excess-- PER EVENT...so in your case it sound like the tenant has caused 5 different damages type on different days....so it's counted as 5 different event- even thought your lodging your claim all at once.


Example:

1. tenant left the stove on and cause a mini fire that damages your oven
2. There are stain mark on your carpet from a previous wine spillage
3. A glass window is broken from a storm that happened last month


You lodge a claim after the tenant's leave....the insurance will consider this as 3 separate claims even if it's lodge on the one day and about the one tenant.....UNLESS you can prove happen for the same "Event- one storm? one fire etc..."

Sorry if the example is a bit werid...it's 1am


P.s Ex-manager of Comminsure ( CBA's insurance arm)

Regards
Michael

 

[giraffez]

Hi,

You only pay ONE excess-- PER EVENT...so in your case it sound like the tenant has caused 5 different damages type on different days....so it's counted as 5 different event- even thought your lodging your claim all at once.

Had a look at the policy, it's per claim. Is this the same thing as event? In your example is it 3 claims or one claim?

 

[Mick C]

Had a look at the policy, it's per claim. Is this the same thing as event? In your example is it 3 claims or one claim?

Per claim and event is the same...
it's like say something broken into your house and sold your laptop on the 1/2/2011 ---- then 2 days later there was a storm/fusion which damages your fridge....

You lodge a claim on the 5/2/2011 --- even though your lodging ONE claim it's for 2 "un-connected" event so it's considered as 2 claim.

My previous example is for 3 claims.

Regards
Michael

 

[giraffez]

Thats silly (not you but the policy). If the tennants intend to maliciously damage your property, surely they won't be saying I'll do this corner today and this corner tomorrow.

 

[giraffez]

Just on this topic, if there is repair that needs to be done but I don't want it at the moment, can I get the amount in cash instead?

For example, holes in the wall, insurance company will only insure the damaged walls to be repainted which will look awkward. I don't have enough to repaint the entire house yet, can I take cash and repaint when I can?

 

[Mick C]

Depends on the terms and conditions of your policy and if your case manger is willing to do part cash settlement.

Explain your situation and if it doesn't cost the insurance anymore to go with your request + they are satisfied that the work WILL BE done ASAP and not spent on another goods/reason they will consider.

As a general rule; insurance company's do not like to see damaged part of the home just sitting there waiting to be repaired especially if they have given you a cash settlement... because they are still insuring your home during this time.

Regards
Michael

 

[giraffez]

Thanks Mike, this insurance claiming process is so difficult. The process is so stressful as the insurance company is not responsive to the needs of the customer.

They see it as a 9 to 5 job, the customer sees it as a loss of income for everyday it takes.

Just FYI, i was looking at the terri scheer policy and they do differentiate between a claim and an event (i'm not with them but just looking around for LL insurance)

https://terrischeer.com.au/static/damage_to_contents

 

[ali]

Hope it is ok to jump on this thread and ask a question: do LLs tend to get LL insurance through a specialist provider and get home and contents insurance through someone else (eg GIO/ NRMA)? Or do you get it all through a LL insurance provider?
Thanks, Ali

 

[jaycee]

Hope it is ok to jump on this thread and ask a question: do LLs tend to get LL insurance through a specialist provider and get home and contents insurance through someone else (eg GIO/ NRMA)? Or do you get it all through a LL insurance provider?
Thanks, Ali

Ali, from what others have said here, my guess it's better to use a specialist lanlodrd insurance provider - Terri Scheer, EBM & AON (an d possibly others have been menitoned). I calimed only a coulle of omnths ago on my EBM Rent cover utlra policy. I wsa left iwth 6 weeks unpaid rent & furniute & items like clothing left behind. I spoke to EBM who suggested I clear it all up & submit any invoices I paid for , the rent left owing and the amounts coverec by bond - they paid me immediaately for all shortall.. Best $240 spent this year.

 

[ali]

Ali, from what others have said here, my guess it's better to use a specialist lanlodrd insurance provider - Terri Scheer, EBM & AON (an d possibly others have been menitoned). I calimed only a coulle of omnths ago on my EBM Rent cover utlra policy. I wsa left iwth 6 weeks unpaid rent & furniute & items like clothing left behind. I spoke to EBM who suggested I clear it all up & submit any invoices I paid for , the rent left owing and the amounts coverec by bond - they paid me immediaately for all shortall.. Best $240 spent this year.

Hi Jaycee, so does this mean you get your building insurance through someone else or all of it through EBM? I have my home, contents and LL insurance with a general insurance provider and not sure
I trust em to pay out. Thanks, Ali.

 

[jaycee]

Hi Jaycee, so does this mean you get your building insurance through someone else or all of it through EBM? I have my home, contents and LL insurance with a general insurance provider and not sure
I trust em to pay out. Thanks, Ali.

I only have my landlord insurance through EBM.

 

[beachside]

I used to work in insurance and as a result quite often get involved in debates on how insurance companies work. Prior to working in insurance I used to think like the majority - which comes down to making incorrect assumptions. I used to think that it was unfair that if someone put in an insurance claim for several dents around their car that they had to pay an excess for each one. Howe rude! But after working in insurance I now know that an excess applies to each "event", not each claim.

The two biggest tips I can give anyone on determining what they are covered for are:

1/ How many "events/incidents" occurred which resulted in the damage. There could be a flow on of directly related damage from the one incident. Excess is applicable per incident, and the highest excess if straddling two types of coverage with two different excesses.

2/ When considering what cover you have - think back to "the initial cause." For example if your house burst into flames as a result of a lightening strike it is not a fire claim but a lightening claim. This is a easy example, others are not so obvious.

I can only say ...READ YOUR POLICY. And then read it again because you are likely to have misread a word which makes the difference between be covered and not - even I misread coverage sometimes.

As for all the specialty companies offering LL insurance, I have never found them worthwhile as too expensive or doubling up on coverage when used to top up cover. You can't claim for the same coverage twice from each insurer, and if an insurer is aware another policy covers the risk they are likely to ask the other insurer to contribute (at least that is the way it used to be). It is possible you may get better service from the specialty companies - can't comment on that. It is one thing to have the coverage you require, another to get the service you require if making a claim. I revise my insurance coverage each year and have always stayed with a general insurer - change as coverage/price changes.

By LL insurance, I mean all the insurance - building (if not strata), LL contents (carpet, curtains etc), coverage for damage/loss of rent by tenant, liability etc.