Insurance question

[Ellmay]

Hi,

Stupid question, but I've had landlord insurance with Suncorp for a few years on my IP but really wanting a bit more cover on the tennant side of things.
I've decided to go with EBM for landlord cover and home/contents cover with another company as EBM don't cover flood.

I was assuming that to cover your building/contents you simply just purchase a home and contents policy. However when i've tried to do quotes online it doesnt let me do just home and contents if i rent the house out.

I know alot of people have building insurance with one company and then landlord insurance with TS or EBM...how do they do it? Surely you don't have to get landlord insurance with 2 insurance companies?


Hope someone can clarify
THank you

 

[brettc]

Hi,

Stupid question, but I've had landlord insurance with Suncorp for a few years on my IP but really wanting a bit more cover on the tennant side of things.
I've decided to go with EBM for landlord cover and home/contents cover with another company as EBM don't cover flood.

I was assuming that to cover your building/contents you simply just purchase a home and contents policy. However when i've tried to do quotes online it doesnt let me do just home and contents if i rent the house out.

I know alot of people have building insurance with one company and then landlord insurance with TS or EBM...how do they do it? Surely you don't have to get landlord insurance with 2 insurance companies?

Hope someone can clarify
THank you

Hi

Most likely you will need to jump on the phone to someone (even Suncorp maybe??) and just explain that you need a defined risks building/contents policy for an investment property but doesn't include the tenant-related risks. If it was us (EBM) we could certainly provide a policy like that (in fact even our online application form allows you to do this) but as you say it won't include flood (at this stage) so you need to find someone that will do the same thing but have flood included.

This is certainly the downside of automation where companies are trying to steer you towards the "right" policy. It's great in theory and probably for 99% of cases, but as you have figured out you want to get better protection against the tenant-related risks, but because of the flood situation you are not quite fitting into the "majority". Good luck.

 

[Ellmay]

Hi Brett,

Can there sometimes be a clash of policies if you get separate LL and building insurance? I'm worried that one insurer will refuse to pay a claim as they'll think its the other insurers responsibility.
For eg. What happens if the house gets flooded and tenants have to move out for 6+ months until property is fixed. Which insurer pays for loss of rent?
Can this get messy?
Will EBM look at including flood cover in the future?

 

[Ausprop]

was just clicking thru the nab insurance and they cover flood - its an allianz product. i thought i would use it but the t&c's say it doesnt cover sea water and storm surge, pretty useless, there's not much else around that property that could flood it. ended up just buying a policy from terri scheer

 

[brettc]

Hi Brett,

Can there sometimes be a clash of policies if you get separate LL and building insurance? I'm worried that one insurer will refuse to pay a claim as they'll think its the other insurers responsibility.
For eg. What happens if the house gets flooded and tenants have to move out for 6+ months until property is fixed. Which insurer pays for loss of rent?
Can this get messy?
Will EBM look at including flood cover in the future?

It's not generally a big concern, most policies are fairly clearly defined as to what they do and don't cover (clear to the insurers not necessarily to the consumer) so it is usually not an issue. In fact if there appears to be a crossover it is more likely that both insurers will be "relatively" happy to cut their losses and share the risk paying 50/50. It's often the easiest way out for them on the rare occasion it occurs.

As for flood, the answer is yes, it will certainly be coming.