Building insurance experiences?

Discussion in 'Property Management' started by Rekke, 29th May, 2022.

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  1. Rekke

    Rekke Well-Known Member

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    Have been looking to take an EBM RentCover Platinum policy out for a new IP, and was doing some research by reading the experiences of others on the forum.

    Found that there was mixed opinions on keeping building insurance with the same provider as the landlord's insurance due to simplicity and less risk, but then others saying splitting the two is also common practise.

    For example, in my situation it would work out quite a few hundred dollars cheaper at face value to pair an AAMI building insurance policy with EBM RentCover Ultra (landlord & contents), which I read a few people on here are currently doing. But when it comes to making a claim I read there may be some issues between the two providers wanting to defer the claims to each other and I may end up significantly worse if something was to happen. I also read mixed experiences with AAMI on here regarding building insurance.

    What are our experiences with splitting versus bundling building & landlord insurance policies?
     
    Rekke, 29th May, 2022
    #1
  2. Hosko

    Hosko Well-Known Member

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    If a claim happens potentially 2 x excess payable as they are separate insurances
     
    Hosko, 29th May, 2022
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    Rekke likes this.
  3. TheRayTracer

    TheRayTracer Well-Known Member

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    TheRayTracer, 30th May, 2022
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  4. jared7825

    jared7825 Well-Known Member

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    Would depend on the property configuration - for multi dwellings such as a duplex would be a building policy for the entire structure and two LL insurance policies one for each unit
     
    jared7825, 30th May, 2022
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  5. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Super common, as far as I understand the Building policies are somewhat similar across the board, but the non-specialists insurers usually have seriously lacking inclusions with their tenancy protections compared to the specialist ones.
     
    Tom Rivera, 3rd Jun, 2022
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Lets use EBM as an examaple. They offer LL cover for free standing, strata and short stay polcies too. Then a policy can be building + contents + LL or contents + LL. There is also just plain old LL only without any cover fore contents by some short sighted owners. Duplexes and even GFs will each require a LL policy for each lease. If one policy then insurer may not cover the GF.

    Saw a client last year who had basic LL cover and no contents. He thought strata policy was enough. Major fire in a neigbouring unit took his unit out with some fire, smoke, water. His tenants were forced out (and they lost some property) and lost rent were Ok for but he wasnt insured at all for kitchen, appliances, carpets, window coverings and more. Cost him around $35K.
     
    Paul@PAS, 3rd Jun, 2022
    #6