Insurance

[WebBoard]

From: Mike .


Insurance For IP
From: Richard
Date: 7/11/00
Time: 9:09:30 PM

Dear all forum contributors, my 1st IP will be completely built in two weeks. I need some help in deciding what insurance I will need to protect it / myself.

1. Building insurance is obviously essential but I am not clear if I also need contents cover (the home is not strata, unfurnished but has carpet, blinds, fixed appliances etc). One policy I read states that their building insurance covers internal "fixtures and fittings". I am somewhat confused!

2. Rental income and landlord protection insurance. From policies I have seen thus far this covers loss of rent through:

a. insured damage making property untenantable / unaccessible.
b. tenant breaking a lease, defaulting, departs without notice.
The policies also cover malicious damage to the property or theft of fittings by a tenant.

Is there cover available should the lease end in due course and a tenant is not found for say two months? I assume (if such cover is offered) that it would be expensive or contain many caveats?

Have any investors out there had to make a claim on their IP insurance and been particularly satisfied with the insurer?

Any experiences / suggestions would be much appreciated.

Many thanks

 

[WebBoard]

Sue1

Reply: 1
From: Mike .


Re: Insurance For IP
From: Sue1
Date: 7/12/00
Time: 9:08:31 AM

Hi Richard

As well as Building Insurance you need "Landlords Insurance" which you have obviously been looking at already. Some "Landlords insurance" policies, as well as the normal tenant related claims also cover you for "Landlords Fixtures and Fittings" which is a type of "Contents" insurance but only for the things that you as the owner own in the house and would have to replace in the event of a fire etc. They are things like curtains, carpets etc.

Anything else belonging to the tenant eg TV's, clothes etc is the responsibility of the tenant to insure for themselves under a separate contents policy.

The reason you need to insure the Landlords Fixtures and Fittings is that your regular Building insurance doesnt normally cover any contents inside the house like curtains or carpets.

One of my policies covers me for Building Insurance and Landlord Insurance (tenant damage, default etc) but not Landlords Contents, so I have a separate Contents insurance for the minimum amount $5000 to cover my carpets, curtains, air-coditioner etc.

But another of my policies (a different prop and insurer) covers me for Landlord Insurance which also includes Landlord Fixtures/Fittings. In this case it's a unit and so I dont have to worry about Building Insurance as the body corporate is responsible for that.

If you are getting the place managed you can ask the agent who they recommend, afterall they deal with these companies all the time making claims for their clients and sometimes they have a deal going with a specific insurer for a comprehensive "Landlord Insurance" policy that might be just what you need.

With anything always check out what you are covered for and what you are not. Especially in the case of Malicious Damage by tenants or their visitors as some ordinary policies dont cover for this (as opposed to specific Landlord Policies).

I am currently insured with QBE (1 prop) and CGU (2 props)

Hope this helps Sue1

 

[WebBoard]

Andrew S

Reply: 1.1
From: Mike .


Re: Insurance For IP
From: Andrew S
Date: 7/12/00
Time: 12:48:09 PM

You should also have liability cover to protect against any claims against you from persons who may injure themselves on your property. Many policies will include this already, usually up to at least $10 million, but you should check.

I also have Landlords Insurance with CGU but have never had a claim so I can't speak for what they are like on the claims side. How about you Sue 1?

-Andrew

 

[WebBoard]

Richard

Reply: 1.1.1
From: Mike .


Re: Insurance For IP
From: Richard
Date: 7/12/00
Time: 10:09:25 PM

Thankyou Redruth, Sue1 and AndrewS. Your comments and advice are much appreciated. I will check out the CGU policies and compare to one my agent has suggested (through a broker 'EBM') and one offered by my bank (underwritten by HIH).

Hopefully this will give me a reasonable cross section to choose from.

Once again thankyou for your time - it's marvellous to have this forum to seek and offer experience and opinion.

Ta Richard

 

[WebBoard]

Geoff1

Reply: 1.1.1.1
From: Mike .


Re: Insurance For IP-are you covered for arson by tenants??
From: Geoff1--you can be suprised!!
Date: 7/12/00
Time: 11:38:11 PM

Ask you insurer this specific question...and not just Sue1, andrew, red1 and richard all property owners...ask your agent or broker...if we dont get a major discussion going on the results I will be very suprised.

Am I covered for arson by my tenant?

Am I covered for arson by a tenants friend?

Am I covered by arson from a passer by?

Post the answers on this forum and we we all learn re this vital matter.

Geoff1

 

[WebBoard]

Robert

Reply: 1.1.1.1.1
From: Mike .


Re: Insurance For IP-are you covered for arson by tenants??
From: Robert
Date: 7/13/00
Time: 9:50:29 AM

Geoff

In regards to units would the building insurance taken out by body corp cover this?

But if a tenant lights a fire in the unit and it's only your unit that is damaged we as landlords would definitely need insurance for this then.

I think I'm about to ring the insurance company about this....

Thanks for providing the extra food for thought.

Regards Robert

 

[WebBoard]

Trish

Reply: 1.1.1.1.1.1
From: Mike .


Re: Insurance For IP-are you covered for arson by tenants??
From: Trish
Date: 7/13/00
Time: 6:56:06 PM

Please bear with me. This is long but I received this email in response to a query about landlords insurance with CGU. Trish

"In the event of a fire an Investigator is appointed immediately to determine the cause of fire. The investigator then reports to our claims department to determine whether or not it is a claimable event.

Malicious damage is automatically covered in our Landlords policy and the maximum amount that we will pay out is the sum insured that you nominate for your building/s and or content/s.

There is an excess on our Landlords Insurance Policy. You can either opt for $50 or $100. It is important to note that in the event of an earthquake the excess increases by $250 and for any claim for damage or loss arising from malicious damage or vandalism done by tenants or their visitors the excess increases by $400.

In terms of your inquiry regarding malicious damage e.g. holes punched in walls, the claims department would need to determine if the damage occurred in one instance or separate incidents. If it was decided by an assessor that the holes occurred at separate times then, yes, you would be required to pay the excess for every hole."

 

[WebBoard]

Geoff1

Reply: 1.1.1.1.1.1.1
From: Mike .


Re: Insurance For IP-are you covered for arson by tenants??
From: Geoff1-Its not what they say its what they dont say111
Date: 7/13/00
Time: 10:24:14 PM

Hi Trish,

Trust me I have been thru this before and you need to ask very specific questions to get very specific answers.

Everyone on this forum take note ...whenever you talk to anyone in any company & especially the government re advice over the phone make a diary entry with the name of the person the time and the detail/substance of the conversation.

Re Trish's policy...What does it say... re fire...the investigator....reports to claims dept to determine whether or not it is a claimable event??????

What the hell does that mean??

If they dont think your fire is a claimable event you are on your own!!!

Hey does that mean you go broke if they wont pay.

Did they tell you up front what is a claimable event???

You are at major risk !!

Ask the questions and report the answers to this forum..

If we are being dudded indvidually then maybe we all need to lobby to see our rights are protected.

2/ Re your holes in the wall. This is exactly what happened to me.

I had a property with numerous holes in the plasterboard...this was my first claim in 20 years and they said because the holes were done at different times then they were separate events.

and $300 excess would apply to every hole...the result "no claim"

Sorry I wouldn't accept that...so I fought them on the definition of time between different events and won...they dont like fighters.

Trish for the sake of all investors ask the hard quetions and get the answers, post them and as a group in the future maybe we can pressure for changes to compamy practice.

Geoff1