landlord insurance

[not so lucky]

I am due for insurance renewal on my IP and I was wondering how many use landlord insurance to cover loss of rent and malicious damage, etc. I only have building, accidental damage and a small amount of contents through Suncorp.

Do you recommend landlord insurance for damage etc?

cheers
Lucky

 

[alexlee]

I am due for insurance renewal on my IP and I was wondering how many use landlord insurance to cover loss of rent and malicious damage, etc. I only have building, accidental damage and a small amount of contents through Suncorp.

Do you recommend landlord insurance for damage etc?

cheers
Lucky

One word: yes. Landlords insurance is only $250 or so a year, and it's worth the money. I've had tenants abscond and damaging the property. The thing is that it can be very serious, and for $250 a year you get peace of mind.
Alex

 

[karina]

NRMA has a landlords insurance policy that includes building insurance. The landlords insurance is only $60.00 more than the building insurance.

I am one of those people that originally had no landlord insurance and it cost me $2,500 in lost rent, $60.00 a year to avoid this situations is money well spent. A must for any property investor!

I now have landlords insurance on all of my properties.

 

[Les]

I now have landlords insurance on all of my properties.

Me, too. And, along with that comes legal Liability (usually $10m these days). Helps the SANF immensely

Regards,

 

[Rixter]

Yes, I use AON Landlord Protection Plus. $230 tax deductable .

Great SANF.

 

[geoffw]

I'm in a minority here.

When I was looking at landlord's insurance for my flock of bats, the premium was per residence- it did not depend on the amount of rent. So for 1BR units, the landlords insurance would have cost me two weeks rent per unit (there's 9 of them)- that was too big a cost. Having the 9 units provided a buffer for vacancy.

Liability insurance comes with building insurance.

 

[not so lucky]

thanks everyone
I will check out the different options and get myself some landlord insurance

cheers

 

[sparky23]

Also check out AAMI. Aswell as the cost being reasonable when we had a car stolen and had to make a claim on our car policy they coughed up within a week after it was found burned out in the bush. I hear a lot of stories of insurance companies causing delays in payments and fighting claims. We have a client whose shop was burned down about three years ago and despite the claim being agreed to not long after he is still waiting for them to cough up.


Sparky

 

[Jocker10]

HI,

My landlord insurance cover, pretty much depends on which property ( and the tenant ) I am insuring. I have an old unit and there's not much in there to be damaged , so I did not cover it for malicious damage.

Also, for tenants who has been with my property for quite a while, I do not have cover for rent default.

However, if I have a new tenant, I cover it for malicious damage, rental default , etc. etc. -- the works.

I know good tenants can turn out to be bad tenants. But I suppose , this is the risk I take.

Jocker 10

 

[Barracuda]

NRMA has a landlords insurance policy that includes building insurance. The landlords insurance is only $60.00 more than the building insurance.

I'm in the process of getting quotes on Building, contents & Landlords insurance for our new IP.

Looking at the NRMA PDS and read this:

Animal damage
If your Landlord buildings or Landlord contents suffer loss or damage caused by animals we will under buildings insurance:
- repair or rebuild those parts of your Landlord buildings that were damaged
we will under contents insurance repair or replace your
- damaged Landlord contents
however we will NOT cover loss or damage caused by
• vermin, rodents, insects or birds
• domestic cats or dogs, or
• any other animal kept at the site
you will need to pay any excess that applies.

Well, I'm certainly glad that I'll be covered against "herds of wilderbeast sweeping majestically across the plains" and the occassional flock of sheep running through the place. Shame it doesn't cover any animals THAT MIGHT ACTUALLY EXIST IN THE BRISBANE CBD!!!

Why bother even stating that they cover animal damage, then exclude anything that might actually make damage....

Guess I've answered my own rhetorical question....

Cheers, Barracuda

 

[Jacque]

Well, I'm certainly glad that I'll be covered against "herds of wilderbeast sweeping majestically across the plains" and the occassional flock of sheep running through the place. Shame it doesn't cover any animals THAT MIGHT ACTUALLY EXIST IN THE BRISBANE CBD!!!

Why bother even stating that they cover animal damage, then exclude anything that might actually make damage....

Guess I've answered my own rhetorical question....

Cheers, Barracuda

Hehe.... classic insurance loophole there, Barracuda

Doesn't say anything about those nasty Brissy eels you might have slithering onto your riverside property, though....

 

[Ricardo29]

barra....

this means any domestic animal "kept at the site".

you are covered for impact damage from other animals, which arent kept at the site and arent yours, be they domestic cats, dogs, or even wilderbeast.

Every insurance policy excludes damage by your own animals.
its not a loophole. its a massive exclusion, written into every policy, and makes good logical sense.

every insurance policy will cover impact damage by animals. by other animals, not yours, and not kept at the site. the neighbours dog can cause impact damage and you would be covered.
although its possibly poorly worded, can assure you this nrma one does as well.

 

[Jacque]

barra....

this means any domestic animal "kept at the site".

you are covered for impact damage from other animals, which arent kept at the site and arent yours, be they domestic cats, dogs, or even wilderbeast.

Every insurance policy excludes damage by your own animals.
its not a loophole. its a massive exclusion, written into every policy, and makes good logical sense.

every insurance policy will cover impact damage by animals. by other animals, not yours, and not kept at the site. the neighbours dog can cause impact damage and you would be covered.
although its possibly poorly worded, can assure you this nrma one does as well.

It does appear to be poorly worded, as it includes " domestic cats or dogs" in the exclusion section. So, Ricardo, you take it to mean that damage by other cats and dogs other than your own is covered in this policy?

 

[Rixter]

Theres a simple alternative - No Pets allowed

 

[Ricardo29]

jacque...
IMPACT damage only, by other cats and dogs. Yes.

not "ruining the joint by shitting everywhere or making it messy and contributing to damage"...IMPACT damage only.
ie. they run into a wall, the house falls down.
they run into a glass door, it smashes.

 

[silas]

Hi Not so lucky we use CGU we just had a claim for a tenant setting one side of the duplex on fire and they have settled everything very quickly without any difficulties along the way. We just need to get the carpet down and they will stop covering loss of rent. Overall claim was well over $100K

Silas

 

[Barracuda]

After ringing around for many quotes for Building, Contents and Landlord insurance, I've signed up with Suncorp.

Reasons:

1) Cheapest. Compared to NRMA (next cheapest) by around 8%
2) Larger max rental coverage than NRMA (up to $4000 vs $3000) - a better match for our property.
3) Can do flood damage with additional inspection / quote(the IP is in Bulimba very close to the river). NRMA will only offer in SA/WA
4) Larger liability cover ($20million vs $10million)

Next cheapest again (AAMI) is $140 more, EBM more again and the biggest loser was CGU which was over $300 more expensive.

Cheers, Barracuda

 

[FrankGrimes]

Hi Not so lucky we use CGU we just had a claim for a tenant setting one side of the duplex on fire and they have settled everything very quickly without any difficulties along the way. We just need to get the carpet down and they will stop covering loss of rent. Overall claim was well over $100K

Silas

That's scary indeed. I've never had landlord insurance but now considering it after reading this post, seems crazy to worry about saving a few hundred a year when something like this could happen.

How the hell did the tenant set it on fire?

 

[silas]

Hi Frank Grimes

As I understand it he put petrol on a mattress and lit it. The scary thing was there was another tenant in the other side of the duplex we (and he) were grateful for a good fire wall. Looking at insurance this would often not be covered as I understand in a normal policy as it was self (tenant) inflicted. The malicious damage and loss of rent covered us.

Silas

 

[FrankGrimes]

Hi Frank Grimes

As I understand it he put petrol on a mattress and lit it. The scary thing was there was another tenant in the other side of the duplex we (and he) were grateful for a good fire wall. Looking at insurance this would often not be covered as I understand in a normal policy as it was self (tenant) inflicted. The malicious damage and loss of rent covered us.

Silas

Dear god.. Is it in a low socio-economic area?