Landlord Insurance with granny flat

Not sure how widely this topic has been discussed. I have 2 properties with granny flats and one has a single event insurance in any one year (ie I can claim for only one tenant loss in any given year); while the other has 2 events (ie. both main and granny tenants can default and I can make a claim for both in any year). The reason I choose to insure the 2 properties on a different basis is based on my assessment of the respective tenants and my own risk profile.

Anyway, the question is regarding insurance premium - I have seen it go up by 18% for renewal year with Suncorp. There is no change in rent or build cost. This one in particular is for Crestmead where premium has increased from $1,440 to $1,692 on a $372k sum insured with $1,000 standard excess and $500 other excess (tenant default, etc). Rent is $325 for main flat and $280 for granny flat - both self-managed with no issues.

What have the other landlords been experiencing on insurance and is there a good provider of insurance in this "house with granny" segment? Keen to understand whether the premium is in the ballpark of yours. Time to do an insurance health check notwithstanding the cashflow from the property is a healthy positive.

 

Hi Holmes,

I have used ANZ and currently Bupa for my investment property + granny flat. My landlord insurance covers both dwellings. To insurers, they don't care too much about the additional granny flat but just how much building value and rental income you want to insure on that title combined.

What I do is I am only insured for essentially "half" the value of both dwellings and "half" the rental income of both dwellings. The reason I do it this way is because I am rolling the dice on both dwellings not being damaged or both tenants not defaulting at the same time.

 

Beware of underinsuring - the insurance company will probably adjust the payout accordingly or could reject entirely if they discover you mislead them as to the value insured.

What Happens If I Under-insure? - PSC Insurance Brokers

 

AAMI offers a building insurance policy called strata insurance that will cover multiple dwellings on a single title. There is no need to actually form a strata. Its simply the name of the policy.

You are then required to take out landlord insurance for each dwelling. So for a house + granny flat you would have 3 policies;

Policy 1 - Strata Building Insurance
Policy 2 - House Landlord Insurance
Policy 3 - Granny Flat Landlord Insurance

I sell 20 - 30 Dual Occ's each year and I can tell you that based on purchaser feedback this appears to the best insurance solution available... doesnt mean its the only solution available, but does seem to be the best one.

 

I had a look at that euro73 and its a great option.
Just wondering can I do this.

Policy 1: AAMI Strata building insurance
Policy 2: House landlord insurance (with EBM)
Policy 3: GF landlord insurance (with EBM).

or do I have to get 5 policies

Policy 1: AAMI Strata building insurance
Policy 2: house landlord insurance (AAMI)
Policy 3: GF landlord insurance (AAMI)
Policy 4: House landlord insurance (with EBM) for damage and loss of rent
Policy 5: GF landlord insurance (with EBM). for damage and loss of rent.

From what I understand , the aami strata building insurance will only cover the building and walls itself, and not any fixtures, AC units, kitchens, ovens etc.

To be honest Im a little confused and AAMI were no help when I called up. ​

 

I'm not sure why you would need a strata building policy unless I'm reading the post incorrectly. With us, I believe all you should require is a RentCoverPlatinum policy (building and landlord) and include two "dwellings/units". You won't be able to do this online so would be best to just give our customer service team a call on 1800 661 662 and describe your property as a dwelling with a granny flat, therefore two tenants. Also make sure you mention you are a PropertyChat member to get a discount.

Any problems let me know but it should be pretty straight forward.

 

Following.

Some good points and something I should also re assess as I haven’t for a couple of years.

I’ve got my house (replacement Val ($300k) and GF (replacement Val $200k) under one building insurance policy with Youi. I then have landlords insurance twice with Terri scheer. Seems it was the way to do it when I spoke to them

Cheers

 

I did strata building insurance (significantly cheaper) for both the house and granny flat with AAMI, and got 2 separate EBM landlord policies to cover the tenants

 

ok - have purchased a house and approved granny flat in sydney.
it seems big insurance wants me to have two seperate landlord insurance - which will cost me more.

so Terri Sheer - have confirmed with them I can get 1 building insurance for house and granny flat (total building value) for replacement....
650k building replacement - around $1600

and get 2 seperate - landlord insurance - one for front house and one for granny flat.
around $400 each so - $400 x 2 = $800.

will this be best option and way forward or does anyone else know any other insurance what offers building insurance only for house and granny flat and I can get then get landlord insurance with Terri Sheer seperately.

Regards