Landlord insurance during corona

Discussion in 'Property Management' started by Swoosh30, 6th May, 2020.

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  1. Swoosh30

    Swoosh30 Well-Known Member

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    Hello all,

    Our current landlord insurance (SGUA-was excellent) expires soon and they do not want to insure us again as we have made several justified claims. We have renovated the property and now it is in a great shape and tenanted, however they still refuse.
    Anyhow, in the market for a new insurer.
    I noticed that many off them (such as terri schemer, sgio) do not offer tenant insurance atm... Looking for one that covers malicious damages and rent default.

    Would love to hear from you which insurer you suggest. WA.

    Thank you!
     
  2. Dan Wood

    Dan Wood Well-Known Member

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    Look at EBM although you may not get any insurance in this climate..

    Get calling and hope you get lucky.
     
  3. ALT

    ALT Well-Known Member

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    I use SGUA as well as they are better value than some of the others.
    Was using Woolworths Insurance before who were also good price wise and paying out on all legit claims.
     
  4. Mat

    Mat Well-Known Member

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  5. Alwayslearning

    Alwayslearning Active Member

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    Found this interesting:

    Many insurers have already ceased offering landlord insurance to new applicants. Of those who still are, notably Youi and AAMI, rental default cover is no longer available as an option within the coverage.
     
  6. Swoosh30

    Swoosh30 Well-Known Member

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    Thanks everyone for your ideas, I am trying to negotiate with my current lender on a solution. Otherwise, no coverage for tental default...
     
  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I'm under the impression no insurers are offering full landlords insurance policies at the moment- at best they're compromised to not include rent default coverage? Can anyone shed any light on that?
     
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  8. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    Most still under embargo and not offering services
     
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  9. KingBendtner

    KingBendtner Well-Known Member

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    Called Terri Scheer this morning, I have an existing insurance with them.
    Unfortunately they still won't take me in (with rent default)
     
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  10. Closet

    Closet Well-Known Member

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    If you are an existing customer with a number of properties some are still willing to consider new business.
     
  11. TMNT

    TMNT Well-Known Member

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    What about renewals??
     
  12. Tom Rivera

    Tom Rivera Property Manager Business Member

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    They're all good AFAIK.
     
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  13. Shawn

    Shawn Well-Known Member

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    I have a few existing policies with EBM.
    Called them up early May as I went unconditional with a property and asked for insurance citing I was an existing customer.

    Filled in an application form and got the policy (RentCover Platinum) over the line.

    Called back a week later as I had a Terri Scheer Renewal and wanted to do a cost comparison.
    Got a quote for this one and it got approved and over the line.

    My partner has a property in her own name (and the property that just went unconditional above was in our joint names)
    Called them up, got a quote for that and approved.

    3 new policies in the last 2 weeks with EBM - but I am an existing customer.
     
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  14. Jasper

    Jasper Well-Known Member

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    I'd love your opinions on renewing this cover with Budget Direct. I'm renewing the policy so I still have the options to keep Theft Malicious Damage by Tenants and Tenant Default

    1. They want to charge an extra $550 annually to cover these options
    2. Excess for claiming on EACH is $1600!!!
    3. Maximum payouts are Theft Malicious Damage by Tenants $10,000 and also Tenant Default $400.00 per week for a maximum of $6,000.00.

    I'm not really sure this is worth it and would LOVE some opinions. Thanks
     
  15. abc_123

    abc_123 Well-Known Member

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    I've noticed a few have the malicous damage capped at $10,000 and I wouldn't bother with such a policy especially if the excess is $1,600.

    Basically you are paying $550 to potentially receive back a max of $12,800 (after paying the excess on both, if they are malicously damaging your property they no doubt defaulted on rent too) plus your claim will affect your premiums by an unknown amount in future years. Not very good value I think.

    If you can't find one that covers malicous damage for a decent amount I wouldn't bother. Most I've seen will cover up to the insured value for malicous damage but perhaps none of those are offering landlord insurance now.

    Edit: I also think that the lesser the amount of malicious damage, the harder it is going to be to prove that is actually malicious and not negligence/total lack of caring or even a genuine accident (but hopefully you can still get accidental damage cover for this under your building and contents policy). Thus tenant may have to do far more than $10,000 worth of damage before you can be confident of proving malicious intent.
     
    Last edited: 5th Jun, 2020
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  16. TMNT

    TMNT Well-Known Member

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    $1600 excess seems like someone who's had claims previously/recently

    I recently got a quote from a company that I already have polices with and their excess was $2000

    I went and got a quote from someone who i also have policies with but not that question, and the excess was "normal"
     
  17. Tom Rivera

    Tom Rivera Property Manager Business Member

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    That stinks and it's not worth it. What's the premium for standard Building & Contents? A far more comprehensive Landlords Insurance policy with someone like EBM, Terri Scheer or PIP is between $250-$350 per annum.
     
  18. wylie

    wylie Moderator Staff Member

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    I've just had one policy increase by 33% to around $1,600. No claims ever for this property, and the only claim I recall with this company over all our policies was in a big hail event in Brisbane where we had windows smashed and roof replaced due to hail damage. That house was sold several years ago now.

    We'd also had one claim for damage to our car, not caused by us several years ago.

    I called and asked why it has increased so much and was told they'd capped the increase for us, due to us having a number of policies with them.

    I know if I take my business elsewhere, I will not be able to get landlord cover like I have so for now, I feel it is best for me to stick with them, keep the landlord cover. Once things settle down, I will certainly look at pricing it up with someone else.
     
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  19. TMNT

    TMNT Well-Known Member

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    thanks for the feedback,

    looks like ill brace myself for policy rises for all my renewals, claims or no claims
     
  20. wylie

    wylie Moderator Staff Member

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    Interestingly, two other renewals didn't rise by anywhere as much as that one, different suburbs, similar demographic. I can't work it out.
     
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