HELP! HELP HELP! Insurance required for properties "EMBARGO"

G'day,
We have just gone unconditional on two properties today.
So I gathered today was the day to get insurance on these properties as the bank won't release funds for the loans until insurance is in place.

However, went on Terri Scheer web site to do the insurance. And BAM! There is an EMBARGO on all new landlord policies and they are unable to do any new policies at this time. I tried calling, the phone is disconnected!

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Who can I get insurance from at the moment?

Thanks Heaps Team. Now more than ever as landlords we need to support one another through this rough patch.

 

Terri Scheer is for Landlord insurance. All you should need is building insurance.

Maybe I'm missing something here.

 

They do my building insurance as well. Any other insurance companies doing this EMBARGO?

 

Without a tenant you don’t need landlord insurance.

You could use any company if it’s just for for the buildings - e.g. RACV (who I use) does both building and contents and also landlord insurance.

 

On my one standalone house building and LL insurance is with TS. I figure that if ever something happens that falls across both, there won't be a turf war between insurance companies.

 

AAMI are self service only

 

AAMI are not doing landlord insurance anymore.

 

Looking at AAMI it said

We currently have an embargo on Tenant Protection Optional Cover. This means we are unable to offer Tenant Protection Optional Cover until further notice.

So they still offer insurance, but not the options to cover rent default by tenant. So you should be fine using this for bank insurance purposes.

 

You don't need landlord insurance to settle the loans for the properties being purchased, only building insurance...

 

Yay. I got a cover note through AAMI for building on both only.
Landlord insurance policies are currently not being done by;
Terri Sheer
AAMI
Suncorp
GIO
APRIA
Shannon

So far... I'm going to also check out Budget direct and RACV as they have different overarching companies compared to the suncorp companies. Fingers crossed I'll be able to get landlord insurance.

ANZ bank is still doing insurance... but this is $$$ OUCH! Still an option

 

Nope. RACV are not doing landlord insurance at this time either.
I understand that I only need building to settle, but I usually have both policies.

 

ANZ website states that new customers can not get landlord insurance.

I suspect premiums are about to skyrocket when policies rollover

 

P...poor government policy on the run which hasn’t been thought out or even communicated sufficiently. New LLs essentially left exposed. This won’t end well with the resi investor hung out to dry.

 

Should I take the ANZ cover then?
They have offered me a product called
"Landlord Insurance Quote"
It looks like it is going to cover for rent default as well as building.
#1 Property $1940.18/year
#2 Property $1533.32/ year

Both properties are being purchased under $300K.
I suspect my bank manager has just quoted me, before I get locked out.

 

I had a renewal come through 2 months ago and had to change a portion of the policy which resulted in a cancellation and new policy and not a renewal. Was advised that due to claim in progress to wait till last minute to do new policy so claim doesn't get interrupted.

Today was the day and surprise surprise premium is now $500 higher than what it was quoted 6 weeks ago - current claim included in premium both back then and now.

 

Oh WOW! That is astonishing that it was $500 higher with the same insurer. Yep, I can see that we are probably going to not win either way. Either the insurance is going to be so sky high any ability to make a dollar is going to be seriously impeded, or there is going to be no insurance situations leaving landlords venerable.

 

Thank you HUGH72
Your right that statement was on their web site at the ANZ. The "home and investment lending manager" who sent me out the quotes is now checking to see if he can actually offer the insurance. He had no idea about the embago situation. Weird times, when the customer is telling the bank staff information that should have been passed to them directly. So thank you for your input. I probably would have accepted the bank insurance only to be denied at the 11th hour.
Waiting for a response from the bank.

 

‘Embargo’ usually implies until a certain date - so I’m assuming it’s for the companies to see what happens with the governments covid response?

 

It's an embargo that has been left open "Until further Notice".
I took the banks insurance, that covers both building and landlord insurance.

The bigger implications here, is that even if the landlord insurance is not technically required to obtain bank funding of the properties it is required by most property managers operating through a real estate agent. Hence, having the landlord insurance should mean that I can obtain tenants in the properties faster.

 

Yeah, but your original post made it sound like you couldn't get funding until you had landlord insurance in place, which is certainly not the case and would not stop you getting finance.
Glad you found a company to cover your landlord insurance in the end though.