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Landlord Insurance Options

Discussion in 'Property Management' started by bsteve, 18th May, 2016.

  1. bsteve

    bsteve Member

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    I'd like to take a rental property off the market when tenants vacate at end of lease.
    My issue is my landlord insurance expires 2 weeks before they vacate. I'll talk to the insurance company but also want to the options out there. Instead of renewing the policy for a whole year, is there a method that I can take cover for that period?

    Thanks
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

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    The best time to take out new landlord insurance is at the beginning of a tenancy when the tenant is 2 weeks in advance for a new lease.

    Since the old insurance expires 2 weeks prior, I would recommend renewing that existing one. If you need to do a claim, do it with the insurer who was there at the beginning of the lease.

    It would be difficult to make a claim on a company that has stepped in 2 weeks before lease ended. Also if a new company stepped in now, there are many ways that policy could be voided given that it's at the end of a lease period.

    You can keep the existing one going and explore new companies when the new lease starts for the new tenant

    Look into ebm from this forum, they are a specialist insurance company with a lot to offer.
     
    MTR likes this.
  3. dabbler

    dabbler Well-Known Member

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    Ask for pay by the month, or if they do not do that, pay them and then when you cancel you get a refund....or take the risk.
     
  4. menty

    menty Well-Known Member

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    Should you purchase landlord insurance before a new tenant moves in or is it okay to purchase while they are staying in it if one needs to make a claim
     
  5. dabbler

    dabbler Well-Known Member

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    You get the insurance when they start, or during, but you can't just sign up and claim for existing problems, otherwise who would pay all the time if it worked that way.
     
  6. brettc

    brettc Well-Known Member Business Plus Member

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    As mentioned, ideally arrange insurance prior to the start of the tenancy, at that stage it would be logical that there are no current problems, providing of course a bond has been lodged which would generally be a condition of a landlord insurance policy. You certainly can take out a policy during a tenancy but you need to be sure that at that stage the rent is up to date and there are no known problems, otherwise it's a bit like only taking out insurance on your house as you see a bushfire lapping at your back stairs. Insurance on the larger scale would fail if cover was only taken out when there was a known event occurring.