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Landlords insurance

Discussion in 'Property Management' started by James Hill, 6th May, 2016.

  1. James Hill

    James Hill Active Member

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    Hi Guys

    Any recommendations on landlord insurance in NSW?

    I have been with AAMI landlords insurance but just shopping around for something possibly cheaper?

    Love to hear of any recommendations

    Thanks all!
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Have a look at EBM or Terri Scheer.

    I wouldn't base it on cheaper. Have a proper look at how many weeks rent they cover, how much excess they have, what conditions they put on it, what their claims procedure is like.

    Seems most of our clients are with EBM, and although we luckily don't need to do it that often, their claims procedure is terrific.
     
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  3. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    You can also get a discount from EBM by quoting PropertyChat when signing up.
     
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  4. Xenia

    Xenia Adelaide Property Manager Business Member

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    Having put insurance claims through AAMI before they are not a very good policy.
    Go with a specialist insurer, EBM or property insurance plus. (we dont' recommend terri scheer any more - long story lets not go there). You will be fully protected should you need to make a claim.
    AAMI have an excess for rent default claims, the above do not.
    AAMI cannot recognise the beginning and ends of leases, known to make up their own dates.
    They do not recognise expenses like cleaning, rubbish removal, damages as being part of investing. - a very big part.
    They WILL cover you if someone went through the property with a bull dozer, but the chances of that happening are.... NIL (almost).

    Chances of tenants defaulting, leaving rubbish everywhere and not cleaning - very high - THIS is what you need to be insured for, real stuff not scare tactics.
     
  5. James Hill

    James Hill Active Member

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    great thanks all!
     
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  6. Hosko

    Hosko Active Member

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    Hi Xenia,
    In your experience where does the Bond come into use with cleaning or rubbish removal? If insurance were covering these costs, where would you apply the Bond?
    Thanks
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Bond is for cleaning / rubbish removal.
    Insurance is for damage, missed / lost rent and tribunal fee.
     
  8. York

    York Finance Broker Business Member

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    Is that only for new customers? How much discount approx?
     
  9. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    New policies only, not renewals. 1 month free iirc
     
  10. brettc

    brettc Well-Known Member Business Plus Member

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    60 days free for the first 12 months, new policies only (you don't need to be a new "customer" but it does need to be a new "property" that is being insured.
     
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  11. York

    York Finance Broker Business Member

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    Thank you. But does the 60 days free period have anything to do with PC?
     
  12. brettc

    brettc Well-Known Member Business Plus Member

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    You need to say you are a PropertyChat member if applying over the phone, or if applying online type "PropertyChat" where you are asked for a Promotional Code.
     
  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    yes definitely, always apply for the bond. Insurance does not allow you to use the bond for anything you want, it needs to be legitimate and demonstrated to be valid. Ie water invoices, showing end of lease water meter readings, beginning of lease readings, invoices from SA water (or equivalent in other states), ledgers showing what the tenant has paid.
    Cleaning and rubbish removal, insurance wants to see in going and outgoing inspection reports to justify what you are claiming.
    Use bond for non claimable items, cleaning,water invoices etc...

    Likewise, insurance will cover rent defaults and damage and again it needs to be justified. If damage to a bench top is being claimed, what was it like before? We recently covered the cost of a brand new hot water system through an insurance claim. Plumbers report states that it had been tampered with and we have an email from a tenant saying "we tried to fix it ourselves and now it is leaking" - thanks for the evidence :)

    Insurance claims are not always easy, especially if you are looking at absconding tenant situations and claiming multiple things. We have an insurance specialist dedicated to them in our office, they sometimes take 2-3 attempts and someone who is focused on it enough to argue small points. A property manager focused on a thousand different things is likely to just accept the first thing awarded as that's all there is or worse - think that the landlord should do it themselves.

    hope that helps
    X
     
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  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    You know that cleaning and rubbish removal goes on the bond not insurance, right?
     
  15. Xenia

    Xenia Adelaide Property Manager Business Member

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    insurance will want to see exactly what you are claiming from the bond. It can't be just anything, needs to be verified.

    Yes cleaning is claimed from the bond.
    Yes I did know that, I've done hundreds of them but thanks for checking on my knowledge.
    X
     
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  16. chi.lam

    chi.lam Member

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    I'm with Allianz and Budget Direct. I had a claim last year with Budget Direct and that went through quite smoothly. I've got quotes from EBM and Terry Scheer and found them to be much more expensive, wasn't worth it IMO.
     
  17. Tony66

    Tony66 Member

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    NSW
    Hi Brett,
    I am new here but being following the SS and PC forum for a while.
    I did purchase LL insurance last week but no such offer was given.
    Thanks
    Tony
     
  18. brettc

    brettc Well-Known Member Business Plus Member

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    Hi Tony

    You would have to have identified yourself as either a Somersoft or PropertyChat user mentioning the 60 days free (presuming you arranged cover over the phone) to receive this offer.
     
  19. JacM

    JacM VIC Buyer's Agent Business Member

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    A fair few insurers are quite stingy on what is covered under the definition of "flood". Be sure to read the fine print.
     
  20. Luke T

    Luke T Well-Known Member

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    EBM are great ,but tend to under insure. Flood cover was not included in one of mine which kept the policy premium down-Shame if it floods though .
    They are the best to deal with claims -no dramas