Renewing landlord insurance for house + granny flat (NSW)

Discussion in 'Property Management' started by Emma Pearce, 30th May, 2016.

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  1. Emma Pearce

    Emma Pearce Member

    Joined:
    29th Mar, 2016
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    Location:
    Sydney
    The renewal for our landlord insurance with GIO is due in a couple of weeks and every year I have to work out which companies cover a house rental and granny flat rental that are on two separate tenancy agreements.

    * Is there a quicker way of working this out or do I have to call them all and ask?
    * I saw on another thread that maybe we should be getting two separate insurance policies, maybe that's cheaper? Any pitfalls with that though where they might not pay out because of some loophole?

    The GIO renewal is $200+ more than last year, $1400. By far the most expensive of our investment properties, not sure why. But we're limited to who we can insure with because of the granny flat/separate tenancy agreements factor.
     
  2. Nick Valsamis

    Nick Valsamis Well-Known Member

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    20th Jun, 2015
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    Location:
    Sydney
    It is normal to have separate leases for the house and granny flat and insurers would wants separate insurance policies then.

    $1400 is quite high so maybe they charged that much to put them under 1 policy. You should call EBM for a quote and you can even get a discount by mentioning PropertyChat.
     
  3. brettc

    brettc Well-Known Member

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    Location:
    Gold Coast
    We would use a RentCoverPlatinum policy to cover the whole premises against defined risks (fire, storm, water damage etc.) and tenant-related risks of one tenancy, and add an additional RentCoverUltra policy to cover the tenant-related risks of the second tenancy. Not sure about the price as it would depend on the sum insured for the property and the location but it would be the most appropriate way to ensure you have the right cover across the entire property and tenancies. The first focus needs to be on getting the right cover, and then worry about price.
     
    Nick Valsamis likes this.
  4. Emma Pearce

    Emma Pearce Member

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    29th Mar, 2016
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    Location:
    Sydney
    Thanks guys. I called GIO and they confirmed the only reason to get two separate policies would be the cap on tenant default is $5000, so if we were unlucky enough to get both house and granny flat tenants defaulting at the same time then we could only claim up to that amount for both combined. Managed to reduce the premium by decreasing the amount insured, it was a bit too high (reduced from $460k building cover to $430k based on their replacement calculator and reduced contents from $12k to $5k because we only need to cover blinds).
     
    Michael Mitchell likes this.
  5. Vicky1987

    Vicky1987 New Member

    Joined:
    15th Sep, 2018
    Posts:
    3
    Location:
    Melbourne
    Hi Emma
    I am looking for my dual key property insurance. Vero insurance used to insure it but they no longer do that. If you still have the property, who are you insured with?