not cheap "peace of mind" landlord insurance for not-experienced landlord

[Wils]

Hi,

I will be renting out my PPOR (unit in a small block mostly occupied by owners) by the winter.

By friends recommendation I found PM and now at the point of choosing the Insurance package.

Since the building is covered by the strata, I really only need LandLord insurance (tenant defaults,
accidental and malicious damage to the property and to the contents, loss of rent, etc).

I have carefully read the several insurance policies (from SGUA, Terri Scheer, EBM, CHU) and they all look more or less the same to me.

I do realise policies from different insurers are different (and from what I read on this forum policies is one thing and how easy the insurer will part with their money if the insured event to happen is another) - but what I don't get - the premiums does not vary much - all in the $260 - $360 range for my property.

Would it make more sense to take out the more expensive insurance in the range to buy myself a peace of mind, and a year later, with more experience at hands, switch to a cheaper policy tailored to my landlord needs
(which I will be more aware of a year later).

If it does make sense - can you recommend me a not cheap landlord insurance for a unit in a Sydney metro area, so I guess don't really need a bush fire or flooding cover, and the suburb is quite safe, so I expect the
tenants should not be bad, but yeah, tenants will never treat someone else's property as they would their own.

So if you can recommend a good "peace of mind" landlord insurance cover for a newbie landlord - would really appreciate that.

Cheers.

 

[Aaron_C]

Actually body corporate insurance can cover landlord insurance as well. Check your certificate of currency.

 

[Scott No Mates]

I'd be very surprised if there was LL cover in the BC's policy but none the less worth checking, although there may be some cover if the building is uninhabitable for temporary rent relief until the occupants can move back - not lost rent or malicious damage .

 

[DaveM]

I have moved mine across to TICA landlord insurance after GIO changed their policy to not cover rent default when the tenant is not on a fixed term lease.

No excess on rent default claims, up to 15 weeks rent cover plus the usual other things.

http://www.tica.com.au/TICA_Insurance_Landlord_Information.php

 

[Wils]

Actually body corporate insurance can cover landlord insurance as well. Check your certificate of currency.

Haven't got a copy of the policy yet, but from what I remember the body corporate insurance does cover for some loss of rent if property becomes uninhabitable, but does not cover for malicious/accidental damage or tenant default. Will get a copy tomorrow and check.

Also I don't think it is possible to get any discount on LL insurance even if I ask insurer to remove the "loss of rent because building damage" event from LL cover policy - these policies seem to be sold as a set package and can't be tailored much, except may be choosing from a few available excess options.

Thank you.

 

[Wils]

I have moved mine across to TICA landlord insurance after GIO changed their policy to not cover rent default when the tenant is not on a fixed term lease.

No excess on rent default claims, up to 15 weeks rent cover plus the usual other things.

http://www.tica.com.au/TICA_Insurance_Landlord_Information.php

Thanks Dave. The price 265 for NSW seems to be the exact match from SGAU (and which is the lowest premium I have found so far), but will have to check their policy details. BTW what do you mean by "a tenant is not a fixed term lease"?

Speaking of a rent default - I had a chat with a colleague today and he said that some insurers define a "rent default" event as when a tenant does not pay at all, making it is difficult to get anything from the insurer when a tenant only pay lets say $200 out of $300 ...

 

[Wils]

I'd be very surprised if there was LL cover in the BC's policy but none the less worth checking, although there may be some cover if the building is uninhabitable for temporary rent relief until the occupants can move back - not lost rent or malicious damage .

Thanks Scott (just saw your reply now) - you probably right, this is what I think too.

 

[DaveM]

Thanks Dave. The price 265 for NSW seems to be the exact match from SGAU (and which is the lowest premium I have found so far), but will have to check their policy details. BTW what do you mean by "a tenant is not a fixed term lease"?

The home/building insurance for TICA is through SGAU. LL insurance is underwritten by Allianz.

Fixed term lease = 6/12 month etc lease. If the tenant goes onto a periodic (ie month to month) then GIO will not cover any rent default anymore.

 

[BestInvest]

im in the same boat, fairly new LL with 3br house in nsw south coast. Existing co is CBA, but havent claimed so unsure how they are. Any one have views on Nrma, ebm, anz FOR building plus landlord insurance?

 

[susan_10]

Just sharing some experience in LL

IMO, LL insurance cost vary because of what they cover and the level of cover so you have to read the 'fine print' and even so there are grey areas like flooding, malicious damage and damage caused by tenants' pet. Our BC insurance will not cover painting associated with any repair so we had to pay out of our own pocket.

The home/building insurance for TICA is through SGAU. LL insurance is underwritten by Allianz.]

Why not go direct with Allianz? Better yet ask your current insurer for your PPOR or car if they offer LL insurance and ask for a package deal. That way you are able to get discounts. Some insurance co offers a cheaper rate if you get insurance through the net like $20 less. I know Allianz does as we are with them but don't take this as some sort of endorsement. You can also ask them to offer you a better price if you get a quote from a competitor or get more cover for the same cost. Also ask around how hard or easy to make a claim.

We have 4 properties and 2 cars under Allianz. Two years ago we made a claim for lost property from Allianz and a stolen car from Budget Direct both happened from a break-in. Allianz paid up within a month and the assessor said it was one of quickest pay out he had processed. We were very happy with our insurance claim. Budget Direct paid for the car repair but will not reinsure us so we switched the car to Allianz and even got it cheaper. It just shows that as a good customer you have the buying power. And cheap insurance doesn't mean not as good