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Landlord Insurance- should I copy PM

Discussion in 'Property Management' started by darrelj, 5th Oct, 2016.

  1. darrelj

    darrelj Member

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    My PM is asking for a copy of the Landlord insurance policy so they can make claims on our behalf when needed. Is this a good option. For the past 3 years I have been keeping the policy with me and making claims myself.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Why have a dog and bark?
     
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  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    Let pm do it, insurance companies are getting more and more difficult to deal with. Let someone with experience handle it.
     
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  4. darrelj

    darrelj Member

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    I have no trust in most PMs. They do things just as per routine but not with any purpose to look after the owner. How many times must we ask for things or point at workings done wrongly for them to say sorry and correct.
     
  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    Then you are paying somone and self managing.
    Find a company that has some level of competency and some runs on the board with insurance claims.

    Most PMs think its a quick online process, find someone who can actually get on the phone and negotiate and pull some results through. Honestly it's not that easy.
     
  6. darrelj

    darrelj Member

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    I have got the tenants lease done by my PM with the previous owners name on it? Can this be considered a lapse in the PM's part? it has happened on two contracts until i show them to correct.. My question is- is this a sign of bad PM? just asking others
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    And you're still using them? That's a sign of incompetence somewhere higher up the line.
     
  8. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Bear in mind that some MAAs allow the PM company to take a % (same % as the rent they collect) of any insurance payout money. Check your MAA before you act on this.
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    If its for rent yes, if its for damages/repairs, no.
     
  10. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I had a client where a gum tree fell down on his IP and the PM swiped 7.7% of a $25K insurance claim for repairs & damages (not rent). I asked for a copy of the MAA he had signed - and there was the clause allowing it! This was in NSW.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Wow thats pretty crappy!
    I've also heard of some writing that their % is of all gross collections... so water invoices get include in that as well :(
     
  12. Barny

    Barny Well-Known Member

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    I let my pm do it. Currently in the process of another claim, if you do it yourself it will most likely speed up the process a little quicker if a claim happens. Example, insurance Terry scheer email your agent for a quote on a damaged item you are claiming, that email might not be responded to straight away. Then when they do, Terry scheer have 10 working days to processs with a response. If Terry scheer requests more information from your agent, again, that will take another 10 business days before they get back to your agent.
    You can easily pick up the phone, and save time and do it yourself if need be.
    I'm currently at 60 days and hoping tomorrow will be the end of it. If I didn't jump in and call the insurance company it would have gone beyond 90days claim.
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    We'll share different opinions on this @D.T.

    Where the pm is expected to call the repair quotes, formalise contracts & oversee the repairs (as opposed to the insurer arranging, supervising and paying), then it can be justified charging for the additional tasks, I don’t agree that it should be at the same rate as the rent unless the claim includes the agent's costs for supervising/administering the work.
     
  14. Xenia

    Xenia Adelaide Property Manager Business Member

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    yes this is a sign of a bad PM definitely.
    I'm sorry you are having this experience :(
     
  15. JacM

    JacM VIC Buyer's Agent Business Member

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    It is reasonable for a PM to make sure that you have insurance and that there is a public liability component. They will not want to step foot on your site (or show prospective tenants through) without it.

    If you let the PM handle claims be clear on the fee for having them do so.

    I am not on board with the idea of having no awareness is going on with your asset. To some degree I think you should be across insurance claims and associated decisions.