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Landlord Insurance

Discussion in 'Property Management' started by MJS1034, 2nd Jul, 2015.

  1. MJS1034

    MJS1034 Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    114
    Location:
    Sunshine Coast
    Hi everyone,

    My first IP is ready to settle in couple of weeks so I'm in the process of getting quotes for landlord insurance.

    I have gotten half a dozen quotes and there seems to be quite a variance in quotes from the different insurers.

    My question to you guys is what is a reasonable price to pay for landlord insurance and is it worth having "extras" like Tennant default and malicious damage? Are there any insurers I should stay away from?

    My IP is in Queensland and it's a pretty standard 3 -2-1 brick veneer built on a concrete slab.

    Quotes are ranging from $600 to $1300 a year?

    MJS
     
  2. swanqueen

    swanqueen Well-Known Member

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    19th Jun, 2015
    Posts:
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    Location:
    Melbourne
    We pay about 1200 but that includes building cover as well. Tenant default and malicious damage was an automatic inclusion in our policy.
     
  3. Roosterman

    Roosterman Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
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    Location:
    Brisbane
    Wow that seems expensive. Try EBM Rent Cover. Less than $300 per year including tenant default and malicious damage.

    That's for a a 2 bedroom unit in Brisbane.

    I did some research on somersoft a while back and this seemed to be the best option
     
  4. Chilliblue

    Chilliblue Well-Known Member

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    Location:
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    Different companies have varying costs dependant on the existing level of risk held over what they believe is acceptable.

    Hence the need for you to work out what type of coverage you require and attain quotes for the same coverage coverage.

    Our insurances range from $330 (unit) to $1,050 (non regional 4br house)
     
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  5. MJS1034

    MJS1034 Well-Known Member

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    Location:
    Sunshine Coast
    Building cover obviously wasn't included?
     
  6. Roosterman

    Roosterman Well-Known Member

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    Location:
    Brisbane
    Sorry, have not had my afternoon coffee. I only own units/townhouses, so wasn't thinking..
     
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  7. MJS1034

    MJS1034 Well-Known Member

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    28th Jun, 2015
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    Location:
    Sunshine Coast
    Yeah that seems about right. Suncorp and a few other big name insurers had malicious damage and Tennant default included where as budget and Allianz they classified them as extras.

    Looks like for full cover its going to be around the $1000 a year. Thanks for your replies
     
  8. HD_ACE

    HD_ACE Game-Changer Premium Member

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    18th Jun, 2015
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    Location:
    Perth
    Do landlord and building with Ebm.
     
  9. rhinsor

    rhinsor Well-Known Member

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    Location:
    Perth
    I got 3 policys with EBM, mentioned somersoft and got a good discount.
    Yet to claim so not sure how good they are.
    PDS looks better then lots of other insurance companies.
     
  10. diagnostic

    diagnostic Member

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  11. Be Developer

    Be Developer Property Developer Business Member

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    @MJS1034

    Make sure you compare apples to apples..

    Some insurance companies' basic insurance policy quote doesn't include

    Flood cover
    Chattels & Fixtures
    Total Building replacement quote
    etc
     
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  12. womble66

    womble66 Active Member

    Joined:
    18th Jun, 2015
    Posts:
    25
    Location:
    Illawarra NSW
    Yes and the LL + Building is their Rentcover Platinum product which I have had for about 5 years thanks to BrettC (SS Poster) (www.rentcover.com.au).

    Claimed under the building policy once without any issue other than on their initial settlement offer I asked for a review of their assessment which they happily did which resulted in an further adjustment in my favour with none of the usual "dodgy practices" that your read about on forums.

    Happily just paid another $1100 for 12 months of coverage and when I shopped around couldn't find anything that was better even from my PPOR insurer.
     
  13. turfy77

    turfy77 Member

    Joined:
    22nd Jun, 2015
    Posts:
    14
    Location:
    Perth
    Ive always had EBM (about $250/year) and then seperate building insurance through SGIO (another $700).
    So total about $950.
    I made a claim though EBM about 6 years ago, about $5000 worth of damage to the house, got about $3500 back off them, so yes they paid up but they argued quite a few points. I guess any insurance company would do that.
     
  14. York

    York Finance Broker Business Member

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    Location:
    Sydney
    I used EBM on my IP. The first year it was $800 for a 3/1/1 house in Western Sydney. The second year it went to $1200. I rang to ask them why such a big jump. They said it's the normal premium and that I got a 'new customer discount' the first year which I was unaware of.

     
  15. Rixter

    Rixter Well-Known Member

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    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    I use AON & Terri Scheer..can't comment on TS as I havent had to claim. Had 2 claims over the last 15 years through AON....no problems with payouts and covered all my costs... Premiums for AON & TS about $300 p/a.
     
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