When to purchase landlord insurance?

Discussion in 'The Buying/Selling Process' started by andrewtfarr, 3rd Jun, 2015.

  1. andrewtfarr

    andrewtfarr Member

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    Just looking for guidance on when to purchase landlord insurance for a new OTP property that is coming up to practical completion phase shortly and why it's best to purchase at that point?

    - Practical completion phase
    - Settlement
    - Upon placing tenants into the property

    Any other options I may have missed?


    Thanks everyone!!!
     
  2. jerrybee

    jerrybee Member

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    Last one I would think.
     
  3. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    I'd assume the last one as well.

    If in doubt - just arrange it now. The costs won't be too high given it's almost finished and tenants will be in the property soon.

    Cheers

    Jamie
     
  4. Scott No Mates

    Scott No Mates ...and people wonder why?

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    I would lean towards upon settlement, unless you have separate insurance coverage for the contents. What if the place is smoke/water damaged on day 2 and you can't get tenants?

    You will require insurance coverage in accordance with the mortgage as well.
     
  5. esh

    esh Member

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    yeah, you can get it upon settlement. what if something happens during open Inspections before it is leased? I am thinking worst case scenario. I myself got it after tenants :D
     
  6. Xenia IM

    Xenia IM Property Manager

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    Building insurance will cover the building.

    LL insurance relies on rent being in advance at the beginning of a tenancy, voided if tenant is in arrears.
    It covers a lease.
    Get it at the beginning of a new tenancy.
     
  7. chilliblue

    chilliblue Member

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    Would definitely look at insuring from settlement unless you are happy to take the risk and wait until tenants are in place.

    Note that anyone has an accident in your lot or there is damage to items within the lot you would not be covered if you wait for a tenant option.
     
  8. jerrybee

    jerrybee Member

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    I think people are confusing insurance for the home and landlords insurance. The latter you get just as the tenant moves in. The former you get at settlement (or after the contract date in QLD). A lot of insurers offer both as a package so maybe that's what you're all referring to?
     
  9. Snoopy6

    Snoopy6 Member

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    In Regards to Land lords insurance. We're looking to purchase an IP in Brisbane and I've looked into a few insurances for Building and Landlord

    Any experience or recomendations on either of these:

    Terri Scheer
    or
    Suncorp?

    Or are they much of a muchness.

    Thanks in advance
     
  10. andrewtfarr

    andrewtfarr Member

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    Good point...

    Obviously the landlord component isnt relevant until you have tenants in the property but do I need to get other insurance or take out home\landlord insurance to cover all the internals such as fixtures and fittings etc (anything internal and not covered by building insurance) prior to settlement?

    IE, what if there is a fire in the apartment between practical settlement and settlement...is that my problem or the vendors? What about in between settlement and placing tenants and there is a fire...clearly that is my problem to deal with so I would assume some sort of home insurance right from settlement would be required?
     
  11. Mtmellum

    Mtmellum Member

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    I've had best service from Terri Sheer. Check who underwrites ( who is the issuer) on the certificate. The policy of Terri sheer seems to be much more LL focused when I first did the research 6 years ago
     
  12. Rixter

    Rixter $uper Investor (Retired)

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    If its your ppor take out home and contents insurance. When you turn it into an IP take out landlord insurance and cancel the previous contents.

    Here's another tip, when you make your offers include the clause that the property is at risk to the vendor until such time as settlement is effective.

    Set up your home & contents/LL insurance effective from settlement date.
     
  13. andrewtfarr

    andrewtfarr Member

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    Great idea Rixter - thank you!