Landlords Insurance - spread the word

[wish-ga]

Recently a neighbour was talking to me. She was about to move out of her PPOR and rent it out. She was very worried about damage, non-payment etc.

I told her about landlords insurance. She'd not heard of it before. She was so thrilled. And felt it was such a small fee to pay for peace of mind.

So, don't assume everyone already knows. You could really put someone's mind at rest.

 

[redwing]

Similarly with depreciation, I’ve been surprised that some are not aware, not only of landlords insurance but depreciation also, as I had thought them basics.. then again, I guess you don’t know what you don’t know.....ya know?

 

[Goofy]

I have actually just sent out an email to all of my owners that dont have it this week.

It never ceases to amaze me that owners dont have LL insurance! As we all know most ACTs around the country are skewed in favour of the tenant, even if we act as soon as we legally can, a 'simple' eviction due to rent arrears can take over 6 weeks, not even taking into consideration any cleaning or damage - with a bond of only a month owners are already down 2 weeks rent...

It is the first thing i always tell new owners, and yet despite me having well over a decade of experience they choose to save money and not take it out and then when something goes wrong that is out of my control they then want me to cover the loss! Um no!

 

[wish-ga]

I have actually just sent out an email to all of my owners ................... something goes wrong that is out of my control they then want me to cover the loss! Um no!

What do you do? You say "my owners".
Prop mgt?

 

[jaycee]

What do you do? You say "my owners".
Prop mgt?

Yes property manager sounds like the obvious job

 

[zeph34]

Similarly with depreciation, I’ve been surprised that some are not aware, not only of landlords insurance but depreciation also, as I had thought them basics.. then again, I guess you don’t know what you don’t know.....ya know?

I didn't know about depreciation reports etc till a friend told me just before tax time. When I took my books to the accountant to do my taxes, he was surprised that I (as a first time landlord) had a depreciation report.

 

[Dan_p]

Who is the best to use? We have two different ones, wondering if after accumulating more properties whether you will get a better deal if combining with the one insurer.

I remember going through the policies when I got the second one and gave up on trying to compare the two.

Has anyome claimed before and had problems and with who, or has anyone claimed and been impressed with the insurer?

 

[travelbug]

I asked my accountant if I should get depreciation reports (early on). He said "up to you". I changed accountants.

Also what a lot of people that self insure (with units) and don't have LL insurance don't realise is that body corp only covers public liability on common grounds.

So if someone is injures in your unit who are they going to sue? YOU.
It's a risk.
Can you just get public liability, if you don't want full rent default?

 

[arriety]

I didn't know about depreciation reports etc till a friend told me just before tax time. When I took my books to the accountant to do my taxes, he was surprised that I (as a first time landlord) had a depreciation report.

I had forgotten about the 'write off' option when we came to renovating a kitchen and bathroom recently. Its sometimes too late to get the info re the old cupboards, cooker and stuff you remove before renovating, so make sure you get the depreciators in BEFORE you start renovating. Fortunately I was able to provide photos and also invoices to show cost of removed items.

 

[Delilah]

Tax variation too. Many people don't realise they can get tax back before tax time.

 

[Specialist]

Additional..... be aware some insurance companies charge more if you self-manage, while others (and major players such as NRMA, AAMI) recognise landlords can sufficiently manage their very own investment properties themselves, therefore charge the same fee regardless of whether you use a PM or not.
It pays to phone around for the best deal.

 

[stevie_sloth]

In my experience (working in the insurance industry, but not actually for an insurance company), a lot of landlord claims do not pay out for neglect by tenants, general wear & tear, or poor housekeeping.

A LOT of damage caused by tenants is caused by these things. The damage allowed to be claimed must be either malicious damage, or intentional damage. Even theft isn't always covered. If a tenant removes a ceiling fan for instance and runs off with it, it may not be covered.

Also pet damage isn't covered. If a tenant has a pet that uses the house as a toilet, you can't claim it.

So there are a lot of exclusions...

 

[plumtree]

Landlord insurance is essential but be prepared for the exclusions.....and the 'excess' usually wipes out all but the more serious claims.

 

[stevie_sloth]

Yes, and if there are several different areas of damage caused by different things, there will be multiple excesses.

Usually $250 per event / cause. Malicious damage because of someone smashing a door in during a domestic dispute? $250.00 excess. Someone accidentally ripping the carpet because of the kids or something? $250.00 excess again...