Costs of insurances

hi, I’m a newbie on property. Currently on the process of buying my first ever property located in VIC which will be an investment property. I’m inheriting tenants. I am aware I would need building and landlord insurances. My question is do I get these now even before the settlement? My conveyancer recommends but banker says as long as I have it when it settles. Also how much am I looking at for these insurances? I’ve read people recommending ebm or Terri scher. Why these over others like Allianz, racv, qbe etc? Thanks!

 

There are different rules in different states but often the advice (from solicitors) is that once you sign a contract you have an insurable interest in the property, so better safe to ensure it is protected as you have no idea of the insurance situation with the seller.

In regard to why there is often recommendations for the specialty Insurers/policies (such as EBM or Terri Scheer), there are a multitude of reasons, for one, it's often viewed that there are more specific risks covered than the big insurer policies. These may include the inclusion of accidental damage, pet damage, loss of rent due to hardship or many other risks. Other factors are often the application of excesses or cover during a periodic tenancy. It's a big subject. At the end of the day you need to consider which policy is right for you, and which risks you are willing to take on yourself should you choose a policy with less cover.

 

Ok thanks.
So what cost am I looking at in terms of these insurances? (Estimate range)

 

There is no way to estimate without some details as it is based on not only the location but the replacement value (sum Insured) of the property. You can get a quote in about 60 seconds by going here if you wish, this includes a discount equivalent to 60 days for PropertyChat members.

If you insure with someone else it will obviously vary and may depend on options you select etc.

 

Hello,
I'm in the exact same situation but I still don't understand something.
The OP mentioned about "building and landlord insurances".
I don't understand what is the landlord insurance because I'm looking to insure the property.
Could you please explain?

 

Brett might be able to explain more but landlord insurance covers you for tenant related incidences/ risks like if loss of income from non payment by tenant, damage caused by tenants to property and contents etc..

 

So does Landlord insurance also cover the property (Home and content insurance) plus landlord's stuff are the two insurances different?
Thank you.

 

When people talk about getting "building" and "landlord" insurances they are loosely referring to:

"building" - covering defined events such as fire, storm, water damage etc. to your building & contents

"landlord" - covering tenant-related risks such as loss of rent, damage by tenants and a multitude of other (mainly) tenant risks - essentially risks that you would not have if you were living in the property yourself.

With either of the above you should be getting some liability cover as well.

So essentially, if you were renting out a single dwelling (such as a house), you would need a "building" policy to cover the defined events, and landlord insurance to cover the tenant-risk. Unless of course you choose to not cover the tenant-related risks which is your choice (you would still need to ensure the "building" policy you get is suited to a tenanted property and disclose that to the Insurer. These two policies can all be rolled into one policy, such as with our RentCoverPlatinum, but there are of course other policies on the market as well.

These are very general comments and it is important you read the Product Disclosure Statement (of any policy you choose) to be sure you are happy with the inclusions etc.

I hope that helps.

 

Thanks for clarifying.
I visited some web sites in the aim of getting quotes and got confused because they all have a different way of describing the basics plus the options (maybe it's a marketing thing) of key words like home and content, building, landlord etc. etc..
Will have to decide with the partner because we still aren't sure if keeping the same tenant or to renovate the house.
Thanks again.