Thanks, good news. I can tell you AAMI experience if I had 2 hrs to write it and wanted to get angry again!
LOLPeter
Landlord Insurance Recommendation
- Thread starter orin
- Start date
Thanks, good news. I can tell you AAMI experience if I had 2 hrs to write it and wanted to get angry again!
LOLPeter
Give Igor Loutkovsky, Loufin brokers a call 02-96335530 or better still his email is [email protected]
He is in Parramatta. He may be able to get better cover at a good price for you.
He is in Parramatta. He may be able to get better cover at a good price for you.
Hi Peter
I should just clarify a couple of things here:
EBM allows 6 weeks the same as TS for tenants default for the basics such as walking out, absconding, notification to vacate give a breaking leases etc. However, EBM allows up to 52 weeks denial of access for court order and if a notification to vacate is given but tenants remain in the property. Essentially, if your tenant won't leave and you need to go through the court process to get them out - up 52 weeks.
We've actually had claims up to 39 weeks in this situation, all covered under denial of access where we can pay up to 52 weeks. To be honest, it's been proven that 15 weeks may not be enough should the court get involved.
I should just clarify a couple of things here:
EBM allows 6 weeks the same as TS for tenants default for the basics such as walking out, absconding, notification to vacate give a breaking leases etc. However, EBM allows up to 52 weeks denial of access for court order and if a notification to vacate is given but tenants remain in the property. Essentially, if your tenant won't leave and you need to go through the court process to get them out - up 52 weeks.
We've actually had claims up to 39 weeks in this situation, all covered under denial of access where we can pay up to 52 weeks. To be honest, it's been proven that 15 weeks may not be enough should the court get involved.
I've got all mine with NRMA as they seemed to give not only the best price but the best service (according to family and friends). I'm thinking of cancelling the landlord policy for my unit which is $319 as AAMI have a deal for $140. The only difference I can see is legal liability of 20 million for NRMA compared to 10 million for AAMI.
Is 10 million enough for legal liability?
Is 10 million enough for legal liability?
Not sure of what you are being offered for $140, I'd certainly be intrigued to know as I'm not aware of any reasonable landlord policy that is anywhere near that premium. I'd be very sceptical about what is covered.
Disclaimer: Brett arranged a quote for me from EBM which I compared.
Re above, thanks Brett and may I write I do think the EBM policy is very, very good and it was line ball. It was when I called the contact number they didn't mention the denial of access as I dint ask I will have to check my policy with TS re denial of access.
I did ask re Court Order eviction and was told EBM covers 6 weeks in Court Order. Is that right or wrong? On all other tenants defaults both EBM and TS where 6 weeks.
Regards Peter 14.7
Does EBM
I emailed Suncorp and asked if they would match the other company (which is the same cost as last year's Suncorp premium).
They offered to knock $100 off the premium. I told them not to bother.
So rather than offer more incentive, after increasing the premium by nearly $500 they offer a $100 reduction, still an increase of around $400. I understand they have increased costs, but as a customer with multiple policies, no claims and a long unblemished record, they are happy for me to leave and take these two right now, they lost our own PPOR recently after having stuffed me about for about 8 months waiting to hear if our carpet downstairs was covered or not in the major "wet" last February that caused a lot of damage in Brisbane. It wasn't covered. Gee thanks for letting me know. We lived on bare concrete for 8 months unnecessarily had they told me up front we were not covered.
I'm just a small drop in their ocean of income, but I'm gone.
They offered to knock $100 off the premium. I told them not to bother.
So rather than offer more incentive, after increasing the premium by nearly $500 they offer a $100 reduction, still an increase of around $400. I understand they have increased costs, but as a customer with multiple policies, no claims and a long unblemished record, they are happy for me to leave and take these two right now, they lost our own PPOR recently after having stuffed me about for about 8 months waiting to hear if our carpet downstairs was covered or not in the major "wet" last February that caused a lot of damage in Brisbane. It wasn't covered. Gee thanks for letting me know. We lived on bare concrete for 8 months unnecessarily had they told me up front we were not covered.
I'm just a small drop in their ocean of income, but I'm gone.
I had three bad experiences with AAMI over my time with them.
Critically they don't allow you to use bond for cleaning like EBM and TS ( there may be others). This means if the tenant decides to leave, not evicted, just ends lease and runs down the bond by not paying for the last 4 weeks AND leaves place filthy, you have to pay to clean it and remove rubbish, carpet cleaned etc. AAMI don't pay the 4 weeks because you have the bond to cover that. END RESULT you lose.
Regards Peter 14.7
I have compared all the policies including many I had not previously been aware of. AAMI is cheap and has one of the easiest plain English policies to interpret (and quickest to review inside out and back to front), but it is a very basic cover and leaves enough holes in cover to drive a mining dump truck through. Therefore don't use AAMI in mining areas
Unfortunately sometimes it's the way a question is worded as we don't specifically state what is covered when there is a “court order” as TS does. It can get a bit sticky when you do as we have been “told” by a caller that they had a TS claim which was to go to court but before it got there the tenant left, and the claim then reverted to a maximum of 10 weeks. Not sure whether this is in the policy but the landlord was not very happy.
The way we do it is simply that if a tenant is issued with a notice to vacate and refuses to leave the property, requiring you to commence court proceedings, we will pay up to 52 weeks under denial of access. This allows for a situation whereby it may for some reason never reach court, therefore there is not an actual court order, yet there is still substantial losses while you are trying to get them out.
Whoever you spoke to has obviously not tied “court order” and “denial of access” together as the order itself is not a specific requirement with us at the end of the day.
Although alot people say Comminsure is terrible.. I can't speak more highly about them... I suffered total loss due to macilious tenant damage... I did not have that specific optional cover selected (major oversight on my behalf)... After a few sleepless weeks they said even though my policy didn't specifically cover the loss they would cover me 100% anyway with loss of rent payments during the rebuild process too
Thanks for the reply Brett and I had considered ringing you but I thought it would be a waste of your time to ask tin tacks and I assumed the broker/call centre knew their stuff.
FYI I spoke to a male at the VIC broker, who went to his boss (didnt say who) to confer and then came back with the six weeks. Had he outlined the above I would have selected EBM as it was cheaper by over 10%.
The lesson is it needs to be clearer to us punters, I waded the complete PDF for both and this and the locks where the only anomalies I found. The locks were not a deal breaker, the advised six weeks was.
Can I ask what is EBM excess for tenants default in VIC and NSW. Is it zero or $200?
I am aware of the if tenant walks it reverts and I thought to 6 not 10. My PM was also aware and says that is why he pushes for court order regardless of situation or insurer. It gets the higher cover and gets the bond awarded.
In the end I am no expert and only could put 3 hrs to review odds.
Regards Peter 14.7
No experience here but is mortgage with CBA? That would have helped. The last thing they want is for you to default.
Peter
Hi Peter
I agree entirely, unfortunately sometimes someone gets an idea fixed in their head when a question is asked and if not sure poses it the wrong way to a supervisor, getting the wrong result, the old chinese whispers thing I guess. Mind you I would prefer they understate the policy rather than overstate and create false expectations, so in that respect I'm relieved anyway.
The TS back to 10 weeks? I agree. Pretty sure it would be 6 in that situation, that's just what the landlord said.
With RentCover there is no excess on loss of rent in any state. I would always steer clear of policies that have an excess on loss of rent, which is where some of the large direct insurers hit you. The AAMI policy for example as has been stated won't pay the first 4 weeks so rent loss only kicks in at week 5, and then there would appear to still be an excess as well. A high percentage of claims would be rendered useless with terms like that.
By the way, I know what you mean about looking at PDS's, they are a nightmare even though they are supposedly now "plain English", you did well to figure out what you did.
Well that is only two polices and one was short stay where you were higher but only a little and no difference in cover.
So I have another three policies coming up in time so I appreciate the fair and balanced feedback. EBM was cheaper on the standard policy but and I wanted to go with it but the 6 weeks factor scared me. I agree it is very hard to outline every scenario and you have to be on the lookout for fraudsters.
See you for the other 3 policies in time.
Peter
No problem, I'd certainly rather tell it how it is than give someone false expectations and cop the flak when they are let down.
Good point - Yes mortgage is with CBA. On face value its probably cheaper for them not to pay and let me default (more likely I would have sold off the land to pay off the mortgage). Having said that, I do use alot of their other services... credit cards, banking, commsec etc so that probably helped influence their decision in the right direction..:
