How much is building inusrance?

B

brettb

Hi,

I'm looking for an average figure for building insurance. The online quotes available require me to fill in large forms about the property and I'm just trying to get a ball park figure that is not property specific. Can anyone throw some building insurance premium prices at me even though they are calculated according to specifics? I don't know if it's < or > $100 :confused:

Thanks,
Brett
 
Hi Brett,

for my own house in SA valued at $272,00 it was $333.00 and for an IP valued at $185,000 it was $233.00.
Gee I must up both of these this year, as it would cost a lot more to build them now.
It is not just the cost of the house to build brand new, it includes the fences, verandahs, paving etc.

Cheers
 
Depends a lot on the excess as well. I've got building and landlord insurance on my IP (payed just over $300k) for $212. That is with a large excess though ($1k), and would be a lot higher with a $250 excess for example. I'm happy with a large excess, because I take the view that insurance is for the large but unlikekly one-off's that have the capacity to bankrupt me, not all the little things.
 
Hmm,

I just paid $396 for an IP valued at $189,000 with $350 excess and an additional $234 for land lord insurance.
 
IP Insurance Rates

Hi Brett,

In the last 2 months, we've had 3 insurance renewals for 3 of our 5 IP's come up. All properties in SE QLD. Details as follows:

IP01: Insurance premium $648 (bldg & landlords); property value ~ $300k
IP02: Insurance premium $633 (bldg & landlords); property value ~ $290k
IP03: Insurance premium $530 (bldg & landlords); property value ~ $250k

Don't you just love insurance.....:confused:

K&R
 
Ive just been going through insuring an ip. With the building insurance you get to nominate a period of loss of rent. Lets say a car drives into your ip or there is storm damage. You nominate a period of time for loss of rent whilst getting repairs done. On average 4 to 6 weeks would be good l reckon. The ins/company told me if there is any reason they cant get to my repair job within that time then its my bad luck. for example if there was a big storm and there were a lot of homes damaged and it took 2 months to get to my job then l would still only be covered for 4 to 6 weeks. So l thought l would get a longer period for loss of rent. 3 months which seems a bit extreme but there was a difference of $5.60 per year between 6 weeks or 3 months. May as well be well covered and $5.60 is not worth the worry in my book.
One thing about this ip game is that you are always learning something.
cheers yadreamin
 
Quotes

I don't just want to do an advert here but if you do want a really quick quote just go to:

http://www.rentcover.com.au/pages/landlord-insurance.php

If you have a unit or townhouse, you select RentCoverUltra, or for a house RentCoverPlatinum. The Platinum policy will give you cover for the building as well as the tenant-related risks. These are really comprehensive policies so may not be the cheapest but will give you plenty of peace of mind.
 
I insure one house in Perth for around $180k with Terri Scheer, I think, and the premium is around $230pa.

Clucker, we usually prefer recommendations of insurance and other services from people who use / have used them. At the very least disclose whether you're an insurance broker, or you work for RentCover, or whatever you do.

Otherwise, answer some insurance-related posts with your knowledge and if you prove yourself you'll find that the enquiries will come soon enough. It's a great source of business here on the forum, but only if you actually show you know about your subject matter and not if you're just pushing a certain product.
Alex
 
Hi alexlee, that's what I tried to do by saying I didn't just want to place an advert, but should have made it clearer. As you'll see from other posts I have tried to provide some knowledge in the area, having worked in it for over 16 years. I no longer directly work on the RentCover product but a lot of my years have been, although still with the same company (EBM). And yes, I have certainly used these products as well as a multitude of others so can speak from a wide range of circumstances. I've also spoken at conferences etc. on insurance subjects as an independent speaker. I hope that clears it up.

Reason for the link is that I am not aware of anywhere else that you can get a quicker and simpler quote, so for ballpark figures it's ideal.

By th way, the Terri Scheer Landlord Preferred Policy is $234 in South Australia, but this is for $45,000 contents as well as tenant-related risks (and liability etc.), but will not cover your building structure against fire, storm etc., for that you also need a separate building policy.
 
Hi Clucker

It may be appropriate for you to modify your info to include a statement to the affect that you are an insurance broker or whatever. I can appreciate from your posts that you have a lot of good insurance info to provide to the forum but people should be aware where this info could be loaded to products that you favor.

Having said that I have a question.

I have a number of properties including units in full brick and concrete buildings. I have building and fire insurance but generally do not have landlords insurance as I simply carry the risk myself.

Now the question is what is the the risk I am actually carrying, not from the simple vacancy, rectify angle but from a liability point of view.

For instance in the case of my tenants or one of their guests tripping on a loose tile inside the unit would my building insurance cover me? or am I fully exposed to this risk?

The second question is if I am exposed to this risk then how do I cover for the liability without having to pay for all the other frills which I am happy to cover myself?

Cheers
 
handyandy said:
I have a number of properties including units in full brick and concrete buildings. I have building and fire insurance but generally do not have landlords insurance as I simply carry the risk myself.

Now the question is what is the the risk I am actually carrying, not from the simple vacancy, rectify angle but from a liability point of view.

For instance in the case of my tenants or one of their guests tripping on a loose tile inside the unit would my building insurance cover me? or am I fully exposed to this risk?

The second question is if I am exposed to this risk then how do I cover for the liability without having to pay for all the other frills which I am happy to cover myself?

Cheers
Click to expand...

Hi handyandy

Just to clarify, I take it that the blocks of units are not strata-titled and you own the land and building yourself? If this is the case have you insured both the building and contents (contents being the carpets, curtains etc.), and presumably there is also a component of legal liability in this cover, more than likely $10 - $20 million?
 
clucker said:
Hi handyandy

Just to clarify, I take it that the blocks of units are not strata-titled and you own the land and building yourself? If this is the case have you insured both the building and contents (contents being the carpets, curtains etc.), and presumably there is also a component of legal liability in this cover, more than likely $10 - $20 million?
Click to expand...

Hi Clucker

I have both. Namely blocks that are all strata-titled and also single title.

All blocks are insured but there is no contents insurance on any. There is the standard legal liability, don't know exactly how much and can't look it up currently.

Cheers
 
handyandy said:
Hi Clucker

I have both. Namely blocks that are all strata-titled and also single title.

All blocks are insured but there is no contents insurance on any. There is the standard legal liability, don't know exactly how much and can't look it up currently.

Cheers
Click to expand...

Hi handyandy

With the properties on the single title you shouldn't really have much issue as your policy should cover your liability as the owner (of the building) against negligence (it needs to be proven you were at fault), regardless of whether you have insured your contents. You certainly should confirm all this with your current Insurer.

In regard to strata-titled properties however there would be more risk. The Body Corporate only has certain responsibilities, and particularly once any improvements are made inside a unit you are taking some risk. I can quote cases where something as simple as tripping on a loose piece of carpet has resulted in a payout of over $1.2 million through the courts. Each strata unit owner should have cover of their own for their risk inside their unit. This is generally done with either a contents policy or a landlord policy that includes liability.

If you're happy to take the tenant-related risk yourself, your cheapest option may be to find a cheap contents cover. A lot of them have minimum sum insured values that would bump the price up, but there have been policies about for low sums. I know we had one where you could insure as low a sum insured of $3,000 which really kept the price down, we don't use it much any more but it is probably still available.

I hope this helps.
 
Hi Clucker

I don't quite understand why there is a difference between one title blocks and where I own the whole block of strata title units?

Are you saying that because in the case of the strata I have the policy in the name of the strata number and as the strata is only responsible for common property then this doesn't extend to the internals of each strata unit?

What about the kitchen and bathroom fit out in each strata unit? My impression was that under a normal building policy, a rebuild would include a kitchen and bathroom but not curtains, carpets and light fittings. From my interpretation you are indicating that these items would not be replaced under a strata building policy.:eek:

Seems like I will have to discuss with my insurer the possibility of having the minimum contents insurance or at least discuss this liability issue further.

Cheers
 
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