terri scheer vs aami (LLI)

[marg4000]

We have landlord insurance with Terri Scheer.

Had an issue with tenants last year, phoned for advice and was surprised to learn that Terri Scheer does not cover any cleaning up costs.

Fortunately the tenants left the place far better than we had feared and the bond covered our outlays, but had it been left in a pigsty then we had no cover through our insurance for removal of rubbish (we are talking multiple car bodies here plus a mountain of assorted car parts) or cleaning.

Malicious damage IS covered, but the excess ($200 from memory) applies to EACH event. So if the carpets are damaged, there are holes in the wall, kitchen cupboards are kicked in, the pool filter is cactus and the fence has been trashed, then we are talking about FIVE events with $200 applicable to each - $1,000. We were told that they would PROBABLY link "holes in walls" to one event, but would not guarantee that.

If EACH case of malicious damage is treated as a separate event with a $200 excess, it is hard to see much of the claim being paid.

The above statements were made to us when I phoned to get advice in case we had to lodge a claim.

Needless to say, it has been a bit of a wake-up call.

Maybe all insurance products of this type are them same, but when our policy is up for renewal I will be phoning around and asking a few probing questions.
Marg

 

[steveadl]

Warning on insurance

Just a quick note/suggestion to add. I told my brother to have a quick glance at this thread. I am not by any means trying to offend, but this thread and a few others have got me somewhat concerned about some people's insurance set ups. Here were his thoughts (he's been an insurance broker for 15yrs+, and now owns his own brokerage):

It was an interesting read. I had a good laugh actually.. as above, people think they are experts, they think they can ring around, get prices, and they will know everything about the policy.

As always, I recommend people speak to experts, not 19yo insurance company staff. That's harsh I know, because sometimes I speak to the 50yo ones and they aren't much better.

We as property investors are well aware of Mortgage Brokers and the benefits they offer (even if we don't use them). Insurance Brokers are very similar and can suss out the best deals for you and often save you quite a bit of money. There are always benefits and negatives of all policies and co's despite the fact that they charge around the same price - the same as mortgages.

Plus the majority of an Insurance Brokers pay comes from comissions built into the insurance policies - if you go direct to the company, they usually charge you the same amount and just pocket what they would have paid to a broker. You don't necessarily get much discount by going through them direct.

More importantly, a good Isurance Broker knows the best LL policies etc. and can explain the differences, so can save you heart ache when things do go wrong instead of getting nasty surprises like some of you have mentioned above.

Not trying to step on toes, just something to be aware of.

PS My brothers company is more focussed on business insurance not landlord/household policies etc. so please don't construe this as a plug for him.

 

[bennido]

Has anyone used GIO insurance before ? Any problem with claims ?

I have been getting quotes from multiple insurers and they seem to have the cheapest quote by far (compared to AAMI, CGU, Suncorp, Allianz, Westpac, etc).

 

[Chelly May]

I'd like to respond to the post from Marge4000

I'm a property manager and believe your information to be incorrect or that you are somehow confused.

I've been using the Terri Scheer for many years and have put through many claims.

Terri Scheer's excess for Malicious Damage is actually $350 so more expensive than you quoted which was $200, however they only charge ONE excess for MD for the WHOLE CLAIM. I'm not sure what you've confused yourself with because it has been like that for the last 12 years.

Accidental Damage is also $350 per event however is capped at a maximum of 2 per claim.

In regards to cleaning and rubbish removal, it is not covered by the policy however Terri Scheer let you use the bond to cover those expenses unlike RACV, AMMI or the banks. They use your bond as an excess and then charge you an extra excess on top.

They even charge you a 4 week excess for loss of rent whereas Terri Scheer charge you nothing. You could claim for a week if you needed to with TS but the others you don't even have a claim unless it's over 4 weeks.

What else? Ummmm. TS cover for periodic leases whereas most of the others dont. A periodic is a month by month lease and after a tenant has finished a fixed term you can not force them to take another, so I would say that 80% of our rent role are on periodics. That's a massive reason to use them if you ask me.

Terri Scheer's service is excellent and in all of my years I have never had a problem.

 

[DavidMc]

Thanks for your response.

Any experience with their building insurance? Busted air conditions or broken glass?

I had a tenant try to steal a wired smoke alarm (FAIL) and I wasn't covered as that was 'accidental damage' not 'malicious damage' with Allianz (from memory, I could have that wrong).

 

[Witzl]

I had a tenant try to steal a wired smoke alarm (FAIL)

 

[Strannik]

Considering that both aami and terri sheer are owned by suncorp - i would dare to say there won't be much difference in claim procedures

 

[Buzz]

I recently did a review of mine AON, CGU, NRMA and had Westpac quote as well. I had a client who had a claim and was amazed how fast they were even liasing with body corporate to work through who paid for what.

If you are a Westpac client with a Premier package you even get a reduction of $100 off excess so if you opt for the $100 excess option and you have a pro pack there is no excess. Anyhow the long and short their policy measured up and was cheaper than all the rest including AAMI.

Maybe worth checking out.

Jane