Join Australia's most dynamic and respected property investment community

Advice needed pls on Building and Landlord Insurance - First IP

Discussion in 'Property Management' started by Jepunk, 26th Apr, 2016.

  1. Jepunk

    Jepunk Member

    Joined:
    19th Apr, 2016
    Posts:
    5
    Location:
    Sydney
    First of all I just want to say Hi to everyone in this forum, I found this forum to be insightful and I've learn some tips in the last week since I joined.

    Due to distance from our workplace my wife and I are about to move out of our PPOR in western sydney and turn it into an IP and rent a place somewhere closer to the city.

    As this is our first time being an investor, I'm little bit unsure about the Building and Landlord insurance on our property while it's vacant (or advertised) for rent. I've had a look on our existing building insurance and I think there is a clause that the property needs to have someone permanent living in it, so I'm guessing we're risking to breach the policy. I've rang a few insurance companies (Allianz, Gio, and westpac) they also cannot offer the insurance while the property is vacant.

    I'm a bit confused about this transitional period and Hoping if anyone could shed some lights regarding this?

    also for the landord insurance, from my understanding it can only be taken out when there is a tenant?

    I'd appreciate greatly for any advice, thanks everyone
     
  2. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    737
    Location:
    Homeless
    My policy states you can't have a greater than three months vacancy. So as long as there's no long term vacancies it's fine.
     
  3. Jepunk

    Jepunk Member

    Joined:
    19th Apr, 2016
    Posts:
    5
    Location:
    Sydney
    Hi Hodor,

    is that for the Landlord Building Insurance cover?
     
  4. Nick Valsamis

    Nick Valsamis Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    504
    Location:
    Sydney
    As far as I can see by looking at the GIO PDS, there is only an additional excess if unoccupied for more than 60 days and a claim is made.

    I don't see why building insurance wouldn't cover you if you are not living there unless they thought it was about landlord insurance.
     
  5. Jepunk

    Jepunk Member

    Joined:
    19th Apr, 2016
    Posts:
    5
    Location:
    Sydney
    I'm guessing I need to change my current building cover type to landlord? I figured since I need to change I'm thinking switching provider altogether and take out landlord building insurance
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    504
    Location:
    Sydney
    Building and landlord insurance are separate. So if this is a house you have, you will need to have both.
     
  7. Jepunk

    Jepunk Member

    Joined:
    19th Apr, 2016
    Posts:
    5
    Location:
    Sydney
    I understand the building and landlord insurance are separate. what I am trying to say is, Don't I need to change my current building insurance policy from personal to landlord type? or are they the same thing?
     
  8. Nick Valsamis

    Nick Valsamis Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    504
    Location:
    Sydney
    You will need to change your mailing address but otherwise the building insurance will be the same.
     
  9. Jepunk

    Jepunk Member

    Joined:
    19th Apr, 2016
    Posts:
    5
    Location:
    Sydney
    Oh ok thanks Nick!