Is this insurance premium too expensive?

Just got my renewal notice from EBM. No claims have been made and nothing in the suburb has changed significantly (such as increased burglaries, floods, etc).

Stats are: building insured for $300k, contents insured for $65k, Rentcover Platinum is the cover for tenant risks. Excesses vary from $200 to $500 depending on the event.
Premium for next 12 months is $1200 (up from $940 last year) so an increase of nearly 30%.

It may be time to look for another insurer.
If you have similar stats how does this $1200 premium compare with your insurer?

 

30% jump in premium is crazy imo.

 

Insurance companies seem to do it every year as most ppl are probably to lazy to do anything about it. I’m finding I have to call each year and ask for a better deal. They will usually offer you one.

 

It’s a lazy tax.

To insurance renewals you can add home loan rates, phone plans, electricity rates.

 

Will EBM discount their renewals every year if you do that?

 

EBM give you a discount of 2 months for the 1st year. From 2nd year, you need to pay full 12 months. I also noticed that they have the sum insured indexed so it increases around 5% which leads to premium increase. That's what I saw in my renewal notice (mine also increase from 9xx to 12xx)

 

I do a quick “reasonableness” check every year as a matter of course. Plenty of ways to get some quotes quickly for comparison. There are going to be differences in coverage but you can use it initially to see if they are close to the mark. If the pricing is substantially different you can then dig a bit further.

- Luke

 

Sounds expensive.

I pay 850pa with NRMA and that covers both building and landlord. I have never claimed but I have been told that I will regret it when I do.

 

Regret it because they won't pay out?

 

Well, apparently the policy I have is quite basic. Only covers 4 weeks rent loss. Won't cover shower recess leak but it will cover Tsunami damage lol But I'm happy with it.

 

There are many factors that impact premiums, including sum insured, level of cover and discounts the policyholder may qualify for.

In this situation, it may be the case you received EBM RentCover’s first-year discount for PropertyChat members (and other selective arrangements) which is equivalent to the cost of 60 days premium off a full 12 months. This offer is only for first-time insured properties, however the discount is not applicable on renewal.

Another reason for the price rise could have to do with the sum insured – there is typically an automatic increase to this figure (currently 4.8 per cent) which keeps pace with inflation. However, please note that this is not a mandatory increase and you can alter the sum insured if you choose. I encourage you to contact a member of the EBM team who can talk you through the value of your policy and ensure you are happy with your current building replacement costs.

Lastly, increasing premiums is not something EBM RentCover does as a matter of course; there is no April 1 auto increase like there is for health insurance. However, there are occasionally increases, and earlier this year there was a small rise of $10 across the majority of policies. Under your RentCoverPlatinum policy, the rise would be dependent on postcode, building type, building age and the sum insured. Again, the EBM team would be happy to discuss this increase and explain exactly what you are paying for – 1800 661 662.

 

To answer the post. Is it too expensive? Don't know, too many variables. Somebody in Townsville could be stoked with this quote if they were being paid a claim at the moment.
You will forget about the premium you paid if you have a big claim that goes smoothly......