insurance for > 1 lease

[bornfree]

Didn't think this was an issue, as there are many student accommodations around, I believe most people just have the vanilla landlord insurance. Have a property settled, still thinking of either renting out as a whole or to student tenants. Been asking few insurance companies and they are as clueless as I am. If I ring up for a landlord insurance they never ask if the IP is rented on one or more leases (and what's this thing with # of leases anyway, insurance companies are full of it !), just where in the content & public liability policy that it excludes dual occupancy/student accommodation.
Which brokers/insurance people use. Property is in QLD.
Thanks John & Tracey for the pm, will follow up with the brokers suggested.

 

[bornfree]

Any insurance brokers on the forum that can enlighten me where in the policy PDS excludes the cover for multiple leases/rooming accommodation ?

 

[Propertunity]

Not a recommendation, but you could give these guys a call if you want insurance for rent-by-the-room student accom:
http://www.pbinsurance.com.au/index.php/products_services/student_accommodation/

If you just want house & granny flat insurance for 2 leases, try GIO or CGU.

 

[lura]

hmm, that is interesting...I'll try and clear this up with my insurance contacts.

I would have thought it didn't matter because you still had an agreement anyway, the consideration for the agreement is just less.

If there was to be a claim, you still had a respondent. If it was in the common areas - you had all tenants to be held liable...

I don't think this should be an issue at all. But i really need to speak with someone about this.

 

[bornfree]

Thanks guys. Just got an usual landlord insurance from a broker. This claim that any student accommodation needs special insurance is probably misinformation (those with an interest ?)

 

[Perp]

If it was in the common areas - you had all tenants to be held liable...

No, you can't. This is one of the major issues with a room-by-room situation. You cannot force tenants to be responsible for damages to any areas that they don't have exclusive control over, particularly when they also have no control over who the other tenants are. Legally, it would be forcing tenants to be responsible for the actions of complete strangers, and that's never going to fly for a residential tenant.

The landlord either self-insures for common area fixtures and fittings, or gets specialised insurance.

 

[Perp]

Thanks guys. Just got an usual landlord insurance from a broker. This claim that any student accommodation needs special insurance is probably misinformation (those with an interest ?)

If that insurer specifically covers multiple tenancies, no problem.

But if you have more than the specified number of separate tenants (can't remember whether it's 3 or 4 these days), you are treated differently - more like a commercial accommodation provider - than if you are a room-by-room residential tenancy situation with only 3 leases, which is more analogous to standard residential. With 3 rooms let separately, some standard landlord insurers may be happy, but with 5 or more, I'm confident you need specialised insurance.

Just ask the insurer outright whether they cover multiple tenancies, and if so, ask them to either put it in writing, or indicate where in the PDS it states same. But don't just take the word of the broker; if they're wrong and it turns out you're uninsured, it'll be exceedingly difficult to have any recourse against the broker.

Even if the broker puts it in writing, you'll probably find that the PDS overrides that, so make sure you've thoroughly read the PDS and are confident that it covers your situation.

 

[bornfree]

I am not worry too much about the content or rent defaults (you can't really claim with all the excess/restrictions/excuses), more the public liability that I need. Will go through the broker's paperwork & PDS with fine comb when it arrives in the mailbox.