Question about building and LL insurance

Hi all,

Partner and I are about to embark on our property investor journey. We'll be moving out from our PPOR by the end of the month. We're a little confused by the investment property insurance products out there.

The cheapest, ANZ, comes in at arond $600 p.a. for both building and landlord insurance. Why is it so cheap? What are we missing? Does anyone have experiences with regards to their product?

EBM and terri scheer are comparable with each other, at approx $1500 p.a. for both building and landlord insurance. What is the benefit of these?

Does anyone here double-insure? We could take out ANZ for the building and LL insurance, and also one of EBM/terri scheer for the LL insurance (300ish p.a.). Would that give us adequate cover for the LL part of things?

Thanks in advance for your answers!

Cheers!

 

Double insuring is a terrible idea. Most insurers have clauses in their PDS that exclude coverage if you are insured somewhere else.

Read both PDS and compare the coverage. Be prepared to fight a cheap insurer tooth and nail if you need to claim.

 

I'd hazard a guess that most Landlords with specialist Landlords Insurance from brokers like EBM and Terri Scheer have the Building & Contents with a more generic insurer- usually through their Mortgagee. It's two distinctly different types of insurance. That said, you should always seek professional Insurance advice on these matters.

$600 seems cheap for ANZ? I don't know how different it is in the ACT but up here, EBM would usually be within 10% of ANZ... usually cheaper.

 

Hi guys, thanks for the input. Appreciate you sharing your thoughts with us. We take the point about not double-insuring.

Yep, ANZ was that cheap, but on the flip side, it seems like you get what you pay for. We're reading the PDS for all three quotes very carefully before arriving at our decision!

Cheers!

 

I use 2 different insurers on some, one for building, other with purely ll cover for rent and contents.

 

PS I look closely at cost, but first the actual cover and claims costs.

And remember...insurers look to minimise what they must pay for, often PDS wording is open to interpretation or hinges on some other condition....