Ll insurance

[Emo21]

question
i have received my renewal notices for the IP and PPOP insurance.So have been busy getting new quotes to compare. now problem is i am with Aami and they give a unlimited property replacement and don't ask for a rebuild cost, so when seeking new quotes all are asking for a rebuild cost and using there calculator it comes up with amounts varying from $530k to $620k for the PPOP which is way over.My estimate would be $350-380k - its a 5x2 i estimate 200m2 living space, double brick, solid timber floor through out and recently had a reno job done.The land size is 730m2 in perth. and recently valued at $490-$520k.
based on these high figure i am getting excessively high premiums, if i use my figures i get a 15% lower premium than with AAmi.

Any ideas which figures i should use.will ,i by using my figures be disadvantaged in any way with the standard LL insurance policy.

 

[handyandy]

When you are talking about replacement cost you are not referring to a landlord policy more like a building insurance police. There may be an extension for LL but won't be it's main function and also won't be the bulk pf the premium charge.


The risk with using your cost base is that at time of the claim they say you are under-insured and proportionally cut back your claim.

Even where a claim is not for full replacement they will still cut back the claim eg kitchen bruns damages that part of building totl cost for repair is $100k they determine that you are 20% under-insured and will consequently only payout $80k rather than the $100k.

Cheers

 

[BV]

Try giving them a call.
Their online calculators aren't that good

 

[Kent Cliffe]

I've seen them even do this with demolition costs, factoring the replacement value for less due to these extra costs. I would suggest speaking with a general insurance broker. They would be able to explain the cover / implications and compare between products.