Self insuring

[DEC]

Obviously we would still have some form of insurance to cover the building for actual damage, fire etc but is anyone doing it for LL's insurance?

I had a stack of renewals come through last night that have risen considerable, so now into the tens of thousands a year in premiums and some of the things the used to pay out on have now vanished from the policy, so paying a lot more for less.
The most we have ever claimed in the last ten years is about $2000 in total so it would put us quite a way in front if we would have self insured.
Most of the damages that have been done have always been fobbed off by the insurer as fair wear and tear and poor housekeeping, never accidental damage, so we have always ended up paying for or doing repairs ourselves anyway.

 

[HD_ACE]

I would be more concerned about the 20 mill of liability that wont be covered

 

[DaveM]

Home building insurance should cover the PL side of things.

LL insurance costs $350-$400 PA. To have tens of thousands of cost in LL insurance you would have 50+ IP's. Is your tens of thousands including building?

 

[DEC]

Home building insurance should cover the PL side of things.

LL insurance costs $350-$400 PA. To have tens of thousands of cost in LL insurance you would have 50+ IP's. Is your tens of thousands including building?

Excellent point and yes it does.
Guess I'd better get a breakdown as they just show a total.

 

[DEC]

Home building insurance should cover the PL side of things.

LL insurance costs $350-$400 PA. To have tens of thousands of cost in LL insurance you would have 50+ IP's. Is your tens of thousands including building?

And you are right
Vast majority was building insurance so staying with the LL's ins. at that price.

Anyone know of one that covers accidental damage ie: extensively gouged walls and scraped floors on removal of furniture by one tenant.
Excessively stained carpet from same tenant.
Swollen skirting boards from excessive water when mopping floors from same tenant.

 

[DaveM]

EBM are one of the few that cover accidental, most are malicious only

 

[PrimeProperty]

Both EBM and Terri Scheer Insurance have accidental damage cover in their landlord policies. You should also be able to negotiate a lower rate for multiple properties as well.

 

[DEC]

Thanks, getting quotes from EBM and TS.

 

[handyandy]

Back to your original question.

Yes we do self insure the LL insurance component.

We would have policy costs for LL insurance > $10k and as such decided many years ago that we would be better of self insuring.

Over the years we have most probably lost about $2k per annum that would have been claimable if we had LL insurance compared to a $10k+ cost pa.

So we are well ahead but it is a numbers game. If you only had a couple of properties and are operating in an area with short term rentals then that would be a completely different situation.

Cheers

 

[travelbug]

So would I be right to assume people that self insure don't own townhouses, villa's or units???

Or do they run the risk with Public Liability (seeing that BC only covers public areas)?