IS EBM the best landlord insurance?

...another catch up!

(sorry, couldn't help myself )

 

I liked the product beforehand to be honest.

 

I'm glad ebm has changed a few things.
As an industry professional at this point in time, terri scheer is our preferred recommendation for our clients and that is purely based on the fact that we have found they are the easiest and quickest to work with.

That could change at any given time and our focus in getting the best cover for our clients not supporting or recommending any kind of insurance broker just because we like them.

Keep in mind that the economy at the moment is slower and insurance companies are hurting financially.

We had one insurance broker do a presentation at one of our ADELAIDE meet ups last year, the stats they presented were quite alarming.
Rough figures at the top of my head were:
$2.5 million paid out in rent default claims in 12 months.
$1.2 million in of that was SA.

The other half was NSW, Victoria, Perth combined.

There are far less investment properties in SA and more defaults
Lease breaks due to accepting jobs interstate is now a trend in SA.

For landlords insurance SA is not good business - low profits due to high claims.

Some alarm bells right here, insurances are tightening their claim procedures by making rules like applying depreciation, increasing excesses. Etc.....

Our job is to look for anything that sounds like they are about to dishonour claims and educate our clients so that they are better protected. For us personally, we are not attached to any company, but do test and monitor all of them and advise landlords accordingly.

At this stage Terri scheer is our recommendation but even they are just a fling that is beneficial at this stage, they will never be a marriage because as property managers, we cannot commit to unstable insurance companies that can change rules to affect our claims and clients at any time.

 

All mine with NRMA and AAMI.
NRMA because of decent discounts across other things like cars. I had two claims (one rental and another home). Both were handled to my satisfactory. I didn't feel as they were trying to avoid paying. They dealt with the PM.

AAMI - I went with them mainly because NRMA didn't cover QLD (or didn't have flood cover). I had a small claim of ~$2000. It was dragged on for a year. I had to deal with them directly. So many back and forths. I got annoyed when they asked for 'pre work' photo!
Sent them an angry email
" ... I have xxx other policies with you. I will have to consider moving away if you are going to take this long and come back this many times.
This matter is in your court. Based on the info provided you decide what you want to do. I will decide what I want to do after that. "
They sent the payment without a question

Thanks to this thread, I have sent an email to @brettc and TS with my IP details for a bulk quote. Let's see what happens. I'll report back if I move.

 

I liked a lot of their product on face value too but when I looked into it a little deeper, things like pet damage, depreciation factors and flood cover were pretty major considerations when it came what I consider to be a comprehensive coverage for a landlord. It wasn't about whether I liked them or not, just what I needed to be covered for and they didn't at that time. It was an inferior policy but it's good to see they've brought in some critical items. I'm always open to reviewing anything as changes are made.

At the end of the day, it's a balance between what you're covered for and whether they will actually make life hard when paying out! No point in being covered for every last thing if they refuse to pay out. EBM and TS are both very good in this regard.

 

When I say I liked them, it was because I have a long history of getting them to pay for both my own properties and my clients ones.

Flood bit never really bothered me as they're not in flood prone areas.

Have had issues with TS wanting to apply separate excesses to different 'events' within the one property and taking their time returning phone calls / emails.

 

This happened to me in a quote I submitted to EBM last month. Got a dismal payout from EBM as a result of them not paying out any quote less than $400, and am currently requesting a review as they didn't honour any loss of rent time for cleaning and repair times. Will re-read PDS with fine tooth comb as I was advised that since cleaning is not claimable, the loss of rent for the time required to clean is also not claimable....

 

This is dependant on whether you tick the accidental or malicious box.

Depends on how you phrase it. I've had 20 weeks rent paid out: time of non payment + time of no access while waiting for tribunal processes + time to relet

In my experience, TS doesnt seem to have as much flexibility. EBM has authority to approve up to a certain threshold without going to underwriter.

 

I think it is across the board about accidental and malicious damage and the associated excesses.

I had a claim go through under malicious damage previously and that went through a lot smoother. This one included a lot of to'ing and fro'ing - house left filthy with small damages throughout.

Will be interested to read what is defined as malicious as opposed to accidental damage and how PMs determine when it is malicious damage, requiring the associated paperwork.

I am confused why loss of rent wasn't paid out as the house was not fit for occupation until suitably cleaned and repairs completed - EBM didn't appear to provide a response here.

 

If the property floods due to a plumbing issue or just a storm that causes damage to the house and water then flows into the house, would that not be considered damage due to flood?

For example if your pipe breaks and the entire house is flooded (or a similar scenario with storm), and therefore your flooring is damaged, I would imagine it will be very easy for them to say we dont cover flood and therefore the damage caused by the water that came into the house is not covered.

Albeit I also appreciate that it depends on who is processing your claim, what mood they are in and how they interpret things just based on my dealing with insurance companies in general.

 

A burst pipe is not "flood", that's water damage and covered completely differently. A standard definition of flood was introduced some years ago to take out confusion, it is:

the covering of normally dry land by water that has escaped or been released from the normal confines of:

• any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
• any reservoir, canal, or dam.

 

Plumbing issues or storm events are different to floods, maybe @brettc can clarify for us?

 

Is it worth claiming a snapped/smashed off window due to heavy winds? It's an old house and it costs more than the excess to fix it.

 

Are you able to confirm if EBM currently covers flood under the landlord and building insurance?

Also if there is electrical surcharge in the area which causes damage to main electricals of the building such as air conditioning units are they covered?

It will be good if your callcentre staff could provide a more straight answer to this type of questions rather than saying they will look into considering them. The whole point of paying for insurance is knowing you can claim with relative ease if and when you need it.

 

Re: Flood.
New policies since 1st February automatically include Flood, prior to that it wasn't covered. Existing policies renewing 1st April or later automatically include flood.

Re: Surge
The reason this answer is not cut and dried is one that can often be the case with hypothetical insurance claims, so we have to be very careful. It can depend on the exact event. As a general rule household policies will not cover a "power surge" or "brownout" however you may be able to get compensation from your energy supplier depending on circumstances (according to the Victorian Energy and Water Ombudsman, but I expect it is rare. Why you have been told is that we may be able to look at it is that if there is a confirmed lightning strike there may be some cover under that area of the policy, but it is too difficult say except on a specific case be case basis.

 

@brettc

Thank you for the reply.

Regarding the floor, my policy ended at the end of Feb. From your description if I renewed now I wont be covered for flood so if I was to renew, I may as well wait till the policy lapses and renew at the beginning of April since I am an existing policy.

Regarding the surcharge, it is usually due to lightening and TS do have a pretty clear policy on this which has a limit. But they do cover it.

What I dont like is when insurance companies leave the policy open because it almost always ends up in them refusing to pay simply because they can.

 

I will message you regarding your renewal.

As for the surge reference, we have a very similar policy condition to the TS one:

Power surge to fixed domestic appliances or domestic equipment directly caused by an identifiable and verifiable source outside your premises including; a lightning strike, an object contacting power lines, the resumption of power following a blackout caused by a storm or unexpected interference with a power company transformer by animal.

Like any policy inclusion this needs to be read in conjunction with the entire Product Disclosure Statement.

Phone enquiries regarding claims (whether hypothetical, potential or real) have to be answered with caution. It is far too dangerous to provide specific answers without all the information, as circumstances can make a significant difference.

 

Hi Brett,
I have a query for you.

Does EBM Rent cover Ultra policy covers the accidental damage to premises caused by a reason other than Tenant's action?

For ex;
The section 1 in the policy says;
Cover for your premises and contents (fixtures and fittings)-Tenants AND Accidental damage.
Basis of cover;
Accidental damage OR malicious damage OR theft caused by the TENANT to your premises and contents.
Sum insured: 50.000

The wording is tricky and when I bought the policy I thought it would cover an accidental damage such as storm water leak or burst pipe to the house fixtures such as ceilings ,wall, carpets etc. But the EBM Call center says this policy only covers if accidental or malicious damage caused by the tenant.
The Strata building insurance also claims they don't cover such a damage & seems no point having any of the insurances.!
Thanks

 

I did a dummy quote for both EBM & TS for a house in QLD I just put a deposit on. Haven't used either before (only AAMI for NSW)

The price difference is $455! EBM is cheaper..