Where should I get landlord insurance from? and how to estimate the property value?

[aitsmoi]

Which insurance company would you recommend for landlord insurance?

What is a reasonable amount to pay for landlord insurance? I am a first home buyer in NSW and am looking to insure my newly-bought 2-bedroom unit with a tenant still living there.

I tried to get quotes from few of the companies. I am intimated by the questions they ask

They ask me things like what is the roof and outside wall of the building made of, etc. I tried to get some of the answers from the contract/strata report and through the real estate agent.

How do I determine the estimated value of contents? and how much excess to select?

What other things do I need to think about while getting a landlord insurance?

 

[mdesai]

Landlord protection

You need to shop around there are many provides - all thieves

I'm with Westpack, covers 250K house including malicious damage by tenants, rental protection etc for about $50 a month.

The house on my property is 1980s and value of the house is only 50K but I've covered for 250K as that's what is required to replace the house if written-off. What's your cost to replace including any rental income loss for that duration etc need to be considered to arrive at level of insured sum.

They do ask basic question about structure of house i.e. Double brick, Brick/Veneer etc which should be easy to answer and that's required by insurer to evaluate level of fire/damage risk and thereby premium.

 

[aitsmoi]

The house on my property is 1980s and value of the house is only 50K but I've covered for 250K as that's what is required to replace the house if written-off. What's your cost to replace including any rental income loss for that duration etc need to be considered to arrive at level of insured sum.

Just wondering how come the value of your house is only 50k? Not sure if I am missing something here....

So that means you can cover for any amount you wish? Then I can cover for only 10k that would roughly include carpets, blinds, stoves and ovens, etc...? I don't have to cover for the tenants contents, right?

 

[Ace in the Hole]

I got a quote the other day from Allianz for building and landlords insurance combined.
Was suprisingly low at just over $400.
Didn't insure the building for much though, as will demolish some time in the near future anyway, and the payout would easily cover lost rent.

Much better than the AAMI quote of over $600 for just building insurance for the same house!!!
And I have all my insurances with AAMI right now.
Might be changing some or all of my cover to Allianz very soon...

 

[morty]

Never, ever, ever, go with RACV!!!

Morty

 

[aitsmoi]

I got a quote the other day from for building and landlords insurance combined.
Was suprisingly low at just over $400.
Didn't insure the building for much though, as will demolish some time in the near future anyway, and the payout would easily cover lost rent.

Much better than the AAMI quote of over $600 for just building insurance for the same house!!!
And I have all my insurances with AAMI right now.
Might be changing some or all of my cover to Allianz very soon...

I noticed Allianz has legal liability cover of up to $10 million whereas AAMI has $20 million...

 

[chilliblue]

Which insurance company would you recommend for landlord insurance?

It always pays to shop around all the companies as different ones will have different quotas at any given time and the amount that they quote will reflect this.

Do a search on the posts and have a read on the various ones.


What is a reasonable amount to pay for landlord insurance? I am a first home buyer in NSW and am looking to insure my newly-bought 2-bedroom unit with a tenant still living there.

As stated above, the variables are the person lodging the insurance, type and amount of insurance required, location, insurance company liability etc. So what one person pays cannot be comparable to what you pay.


I tried to get quotes from few of the companies. I am intimated by the questions they ask

No need to be. Remember that one of them out there will want your money.


They ask me things like what is the roof and outside wall of the building made of, etc. I tried to get some of the answers from the contract/strata report and through the real estate agent.

Should these not be apparent from the outside? If not, ring the agent and/or your legal representative (if you have not settled) or the strata agent (if finalised).


How do I determine the estimated value of contents? and how much excess to select?

Work through everything from the paint on the walls/ceilings and floor coverings within. You will need to understand what your strata is responsible for and gain you may need to back to your legal rep to confirm what is yours.

What other things do I need to think about while getting a landlord insurance?
Keep an eye on the excesses charged, conditions such as whether the tenant needs to be under a signed lease, whether you require the property to be managed by a licensed agent etc, review the definitions and make certain you understand everything on the policy.

It may easier for you to do up a spreadsheet that has a list of what is covered, what excesses are nominated and what is excluded so that you can cross reference.

If you have any more questions, feel free to PM me.

Good luck.

 

[stinadaze]

In April we decided to go with Allianz for our IP. house is covered for $115k, rent is $300, has the limited liability, does not cover for malicious damage or pets, and includes landlord insurance nothing magnificently special about it. we paid around $550.

a few months later i received a letter stating that they had a "technical issue" on their site and the wrong PDS was available for the premium i paid! they will cover as promised without asking for more money for the remainder of the year (as they should), but i find it hard to believe that i should be paying more than $550 no? or am i being cheeky

I will surley be looking around again early next year as Allianz was competitive but only by a small amount! we started out with everything with allianz and slowly slowly have moved everything away as we keep finding much better value.

 

[candyinvest]

Never, ever, ever, go with RACV!!!

Morty

can i ask why?

 

[Lamingtons]

OP i thought you're purchasing the property to live in not rent out?

 

[tonyc00]

"Best Landlords Insurance in Australia"

hi

I note that the current edition of "Your Investment Property" magazine has an article entitled "Best Landlords Insurance in Australia".

Has anyone seen it, and can make comment.

I'm currently about to proceed with Lumley, although both Terri Scheer and EBM are good.

Thanks

Tony

 

[Whozat]

They ask me things like what is the roof and outside wall of the building made of, etc. I tried to get some of the answers from the contract/strata report and through the real estate

Sounds like the companies you are talking to think you want building insurance included. You purchased a unit so your building insurance will be covered by the Body Corporate. The same term 'Landlords Insurance' is used to mean a policy that includes the building, as well as one that only covers you for tenant issues.

For Landlords insurance only to cover problems that might arise because of a tenancy, both Terri Scheer and EBM have been recommended on here many times. I am pretty sure that they both have predetermined excesses on most claims.

Not sure about Terri Shceer but EBM includes contents up to $50K and the cost varies little from State to State, at around $270 per year. 'EBM Ultra' is the name of the cover. Go to their website (www.ebminsurance.com.au) and click on that option. Easy online quote. Excesses and coverage clearly outlined.