Landlords Insurance Rejection...Where to next?

M

Mike8t1

Hi All

I have a property in Kempsey, which as many people here may have experience, gets damaged at every opportunity. Aside from damage i have had the last 3 tenants take off while owing rent. I have made a few insurance claims and now the insurer wants nothing to do with me.

I initiated a quote with another insurer but was denied as this is one of the criteria which means they dont want to touch you with a 10ft pole.

Has anyone been through this or do you have a way around it?

Thanks for the help
Michael
 
Will you consider selling?

If you expect these issues to be ongoing, is there a high potential upside at all to this investment to offset all the issues?
 
Is it a house? Maybe try a broker or one of the standard house insurance mobs that package in landlords. Otherwise, try the lender - they're usually tripping over themselves to offer you insurance.
 
Ace in the Hole said:
Will you consider selling?

If you expect these issues to be ongoing, is there a high potential upside at all to this investment to offset all the issues?
Click to expand...

Its is returning good rent but each tenant ruins the place and to be honest it is a blemish on the portfolio. Id off load if I could get near what I bought it for as I feel prices have gone backward. Pricefinder doesnt have many comparables from this year. Either way im expecting a sales appraisal this week.
 
simtr said:
Is it a house? Maybe try a broker or one of the standard house insurance mobs that package in landlords. Otherwise, try the lender - they're usually tripping over themselves to offer you insurance.
Click to expand...

I didnt think of the lender! Might give them a try.

Cheers for the responses team.

Michael
 
Mike8t1 said:
I thought this, but one of the first questions the ask is if you have been refused insurance or made multiple claims.
Click to expand...

Sure, but aren't premiums calculated based on risk.
So, if the normal premium for your property is 2k/annum, they might still offer, just at a higher rate.
Unless being refused insurance precludes you full stop.
sort of like how having a criminal record barring you entry from certain countries.
 
miss green eyes said:
Sure, but aren't premiums calculated based on risk.
So, if the normal premium for your property is 2k/annum, they might still offer, just at a higher rate.
Unless being refused insurance precludes you full stop.
sort of like how having a criminal record barring you entry from certain countries.
Click to expand...

It seems to be enough for them to halt the whole process. A few of the online quoting sites boot you straight out and say "we are sorry but we can't insure this property"
 
Mike8t1 said:
It seems to be enough for them to halt the whole process. A few of the online quoting sites boot you straight out and say "we are sorry but we can't insure this property"
Click to expand...

Try calling them.
I did that once to get a larger-than-normal amount of insurance for my contents (thought I'd rather over-insure than under). The person at the call centre had to ask her supervisor for permission to insure for that much.
Might work for you too.
Have you called. EBM? I spoke to them last week and can't recall if they asked me that question. They didn't ask much.
 
miss green eyes said:
Try calling them.
I did that once to get a larger-than-normal amount of insurance for my contents (thought I'd rather over-insure than under). The person at the call centre had to ask her supervisor for permission to insure for that much.
Might work for you too.
Have you called. EBM? I spoke to them last week and can't recall if they asked me that question. They didn't ask much.
Click to expand...

It was EBM who refused me insurance in the first place!
 
Mike8t1 said:
It was EBM who refused me insurance in the first place!
Click to expand...
They might be more conservative, or offer fixed terms and conditions
Try again - keep trying!
If there are low-doc and no-doc loans, there must be insurance out there for you!
Just a matter of pricing for the insurer to cover the level of risk they're taking on, isn't it?
 
I've been trying to tell people here forever to not use insurance when you can claim it from the tenant.

Sure it is easier, but there will come a time, after too many claims, when the insurance companies will have nothing to do with you, or increase your premiums so high, it may not be worth it.

Stop taking the easy way out.
Start making tenants liable.
When this happens, the tenants learn there are consequences to their actions, and it should slow down (it will never stop)
 
kathryn d said:
I've been trying to tell people here forever to not use insurance when you can claim it from the tenant.
Click to expand...

Unfortunately tenancy laws limit the tenant's liability to the bond ie 4 weeks rent (absolute maximum). It doesn't go far if they are a couple of weeks behind, then you apply to the tribunal, wait for the hearing date, get vacant possession and it is damaged/full of cr@p etc.
 
Scott No Mates said:
Unfortunately tenancy laws limit the tenant's liability to the bond ie 4 weeks rent (absolute maximum). It doesn't go far if they are a couple of weeks behind, then you apply to the tribunal, wait for the hearing date, get vacant possession and it is damaged/full of cr@p etc.
Click to expand...

Yes, I know.
(In our province we can only collect 1/2 months rent and some provinces don't permit you to collect any)

That doesn't change the fact, that you can go after the tenant for all damages and rental arrears.

Maybe that is why some SSer's think we are 'mean'...we don't have insurance that will cover this type of stuff.
We go after the tenants, and they are held responsible.

We have used our property insurance once, since 2004...when the tenant burned down a house of ours.
Tenants had tenant insurance long enough to show us, and then cancelled it.
 
kathryn d said:
I've been trying to tell people here forever to not use insurance when you can claim it from the tenant.

Sure it is easier, but there will come a time, after too many claims, when the insurance companies will have nothing to do with you, or increase your premiums so high, it may not be worth it.

Stop taking the easy way out.
Start making tenants liable.
When this happens, the tenants learn there are consequences to their actions, and it should slow down (it will never stop)
Click to expand...

thats really going to go down well isnt it!!

oh mr/miss tenant, the repair bill for all the holes you made, destroyed kitchen, cigarette marks, tons of rubbish, plus unpaid rent, unpaid utitlites
comes to a grand total of $10k, how would you like to pay for it???

even if you take them to tribunal, if they dont leave a fwding adress, you are boned,
get them to court, you cant get blood from stone,

so chances are they will pay back $5 per week for 20 years!1
 
You must log in or register to reply here.

Similar threads

goponcho
Landlords insurance - duplex
Replies
3
Views
1K
goponcho
goponcho
oneguy
Leak in Shower Pipe - can I claim on insurance?
Replies
3
Views
1K
Lil Skater
Lil Skater
Xenia IM
taking advantage of a landlord
Replies
12
Views
5K
crest133
C
W
Maximise landlord insurance payout - how?
Replies
11
Views
2K
Xenia IM
Xenia IM
A
landlord protection insurance
Replies
8
Views
2K
MIW
M
Back
Top