Landlord Insurance vs Building Insurance

[SliderC]

I just filled out a quote for landlords insurance on the Allianz page and it asked me to enter the estimated value of the home.

Is it normal for people to take out building insurance and landlord insurance? Are they generally considered different policies, one covering your building, the other covering your tenant/landlord risks? Or is it more so that landlords take out landlords insurance and owner occupiers take out building insurance?

Cheers all.

 

[Xenia IM]

Do not do LL insurance with Allianz
they have an excess on rent default claims of up to $1000
They do not allow for normal tenant claims related to getting the property rent ready.

Use a specialist property investment company ie Terri Scheer
default claims are zero excess and claims are easier to process.

 

[Scott No Mates]

Is it normal for people to take out building insurance and landlord insurance? Are they generally considered different policies, one covering your building, the other covering your tenant/landlord risks? Or is it more so that landlords take out landlords insurance and owner occupiers take out building insurance?

Cheers all.

Tenants MIGHT take out contents insurance if you're lucky but it is no concern of yours. You need to take out building insurance to meet the obligations placed under the mortgage that you signed. Whether you take out LL insurance is up to you as risk mitigation. Some insurers offer LL & Building cover in a package.

 

[miss green eyes]

Building insurance is recommended (compulsory by law?) if you own the building (eg if it's a house).
If you own a unit, only landlord's insurance is recommended. The strata should have insured the building for you.
What happens if the strata is negligent and don't insure the building?
You can buy mortagee strata protection insurance.
So, if you bought your unit and have a mortagage of 500k and the building burns down and the building insurers won't pay because strata didn't pay the premium, the mortgagee strata protection insurance will pay the difference.
You will still lose the increase in market value though. ie if you bought the unit for 700k (with mortgage of 500k) and the unit is now worth 2mil, you only get back the 500k to pay out your mortgage.
Contents - some, but not all contents are covered by the landlords insurance. You need to check with individual insurers what they cover. 'contents', in the context of being a landlord, isn't referring to the TV, fridge, clothes etc. Blinds, carpets, rugs, bathtub, toilet, kitchen sink - these could all be defined as contents.
HTH