Landlord's insurance - who to go with

Hello!

I am about to be a FHB with the intention of using the house as a property investment. I will be renting out the house and am currently looking for insurance companies.

I was thinking EBM, but they require me to get electrical and plumbing wiring reports just for a quote. I understand why but this is a bit off putting as no one else has required this. The elctrical and plumbing work fine btw. So EBM isn't out of the picture BUT I was thinking CGU. CGU have terrible reviews online but my mum is with them and she has been paid out a few times.

I was wondering what other people's opinions on CGU were or if I really should stick with EBM.

I have also read many PDS for LL insurance. My main concern is tenants absolutely wrecking the place (rubbish everywhere, stained walls, destroyed carpet, wreck bathrooms etc. The usual horror stories you hear) and having to jumping through hoops for a claim.

Thanks in advance!!

 

Have never had any ask for electrical or plumbing reports before, is the house 100 years old or something?

CGU isnt very good in my view - did a rental claim with them, they had a max cap on the amount and took an excess out.

 

CGU as a LL insurer wont cover much , rent loss etc, and each type of event will have an excess ....and usually to lower cost of premium you have to have a sizeable excess.

EBM seems to take some time, but def far better from the LL aspects...

TS is another, I did a small claim with them donkeys years ago and was very quick and no drama.

Whatever insurer, check PDS and check that they do payout well, cause no point having cheap or fantastic insurance if they do everything to avoid paying.

 

Insurers wont often cover all damage from a bad tenant if a specific event doesnt occur. (ie a Sat night party and the cops arrive) They treat each piece of damage as if it occurred at different times and that means multiple excesses etc.

Managing problems starts with the PM being diligent with tenant selection etc and regular inspections and reports. Insurance is a safety net and you can be either a little or a lot out of pocket.

 

Just a warning to anyone - steer clear of GIO. I recently had a claim totalling around $10,000 for loss of rent, clean up and damage to property. GIO assessed the claim and paid $507.08. They only pay 2 weeks rent default if the tenant is on a periodic lease. And of course their interpretation of malicious damage goes in their favour. Definitely changing insurers - trying to decide between Terry Sheer and EBM??

 

Yes the house is a bit old. Im just a bit annoyed they couldn't give me a hypothetical quote at the very least. This is all very daunting being new and all. Plus settlement is soon and I was only just told I need to show the bank proof of insurance

 

I have been with Terri Scheer for a few years now after switching from EBM and have just gone through a fairly substantial claim of around $10,000. They have been absolutely fantastic - you deal with the one claims consultant who you can speak to personally if you like and they will kick off any rent loss almost immediately while invoices come in for any damages.

They were also very generous with items they technically didn’t need to pay e.g. water arrears beyond bond. They have also fairly recently upped their rent cover to 20 weeks (or relet) which is quite substantial.

Overall I thought the product and service was fantastic as you never really know until it’s tested with a claim.

- Andrew

 

I've have a few with EBM and have never been asked about electrical and plumbing reports with them let alone any other insurance company. Can you tell us a bit more about the property and where it is located and the age?

 

Built in 1915 which is probably why. I mean I understand but a bit annoying I can't even get a quote is all.

Also for MALICIOUS DAMAGE what would fall under this? Could someone please give me examples and when would I report it to the police??

 

I've been tossing up between Budget Direct (as I will be eligible for a multi-policy discount) v Terri Scheer ... I'm leaning towards Terri Scheer .... Don't base your decision on premium price alone ... Read the reviews carefully to see how each insurer deals with claims ...

 

Are you a fhb or an investor? As a fhb you're required to live there for a set time to keep any fhbg. If you're an investor, then you can get the fhbg at a later point in time.

 

budget direct is really cheap but only inaure 10k for malicious damage by tenants

 

Well this will be my first house I ever buy but it is an IP

 

Has anyone used TICA's LL before? I got a flyer the other day, cover looked pretty good, definitely comparable to TS etc.

 

I have used Woolworths Landlords Insurance before and had a claim for Malicious Damage to a property down in Port Kennedy (Perth).
The PM kept good property condition reports and inspections. The claim was just for a few damaged doors, broken window other damage that I wouldn’t have picked up. The claim took a couple of months to come through, but was way more than I was expecting, so was all good in the end.
I have just also taken out a landlords insurance policy with TICA last week, first time I am using them.
I did I try for a quote over the phone with TS but their customer service and price was shocking so I didn’t bother with them.

 

Loss if rent will be in PDS....so read them...

Dirty places full of rubbish no one covers....

Really...if someone has a hand full or more, prob better self insuring......

 

It's odd they asked about a electrical and plumbing report.
Do you have water sprinklers and a fire alarm system that rely on the electrical system ?

 

No w as ter sprinkler system not that they asked but by law fire alarms have to be installed

 

Racv also have a good product

 

His point is that the FHB only applies to a property that you designate to be your first home - it is not a first property grant. If you purchase a property as an IP from the outset, the FH grant is still available to you for the purposes of your first home at a later date.

- Andrew