Wraps & Insurance

From: Steve McKnight


Some time ago I mentioned that I'd take it upon my shoulders to arrange for an insurance product that is wrap specific.

For a long time there has been some uncertainty about wraps and insurance.

The risk is you wrap a property to a person who would otherwise not qualify for insurance. If a problem occurs, then the insurance company may reject the claim, leaving both the investor and house buyer out of pocket.

One example I know of to illustrate the point is an investor who wrapped to a client with a previous criminal record. After a short while later the property burnt down and the insurance company rejected the policy saying that they would not have insured the property if they had previous knowledge about the criminal history.

The great news is I will soon be able to provide details of a purpose written insurance policy for wrappers that will protect our interests in the above circumstance. I'm just finalising details of what the premium will be and also the best way to apply for the policy (which will probably be online). The policy is underwitten by one of Australia's leading insurance companies.

How can you find out more? Well, you can either wait and I'll make another post here once more information comes to hand, or if you want to receive an information bulletin when it is ready that outlines more of the specifics and be amongst the very first to benefit from the policy, then just drop me an e-mail.

Please note that while the insurance company will pay me a fee for policies written, I have undertaken to donate 100% of the amount to recognised charitable purposes.

Wraps is about creating win-win outcomes for all involved... right?

Best regards

Steve McKnight
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