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Sum Insured for Landlord Insurance

Discussion in 'Property Management' started by Johnbrown12, 13th May, 2016.

  1. Johnbrown12

    Johnbrown12 Member

    Joined:
    29th Mar, 2016
    Posts:
    15
    Location:
    Sydney
    Hi Guys,

    I am in the process of organising landlord insurance for a recent regional NSW IP purchase. I have decided to go with Terri Scheer but would just like to know everyone's thoughts on how much I should insure it for?

    Its a 2 bed townhouse in a large NSW regional town. Standard finishes - nothing too flash. The cover starts at $60,000 which is $356 per year while for $70,000 it jumps to $487 per year. Is there a rough rule of thumb for the amount of cover or what does everyone suggest?

    Thanks all much appreciated.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    567
    Location:
    Perth
    Is it for building+contents+LL? Aim for full replacement cost for building insurance.
    What would it costs to rebuild that townhouse today if it turned to ashes in a fire?
    For something not flashy, anywhere from $30k to $50k will cover contents+LL stuff in most cases.

    I am with EBM RentCover. They underwrite QBE for the building insurance(IIRC).
     
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  3. euro73

    euro73 Well-Known Member Business Member

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    18th Jun, 2015
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    1,412
    Location:
    Sydney
    I assume strata covers the OP's building insurance. What the OP seems to need is landlord + Contents. In my view, 60K contents coverage is more than adequate.
     
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  4. Greyghost

    Greyghost Well-Known Member

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    23rd Jun, 2015
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    Location:
    Melbourne
    What does your loan contract state the minimum replacement value must be. That is the starting point.
     
  5. brettc

    brettc Well-Known Member Business Plus Member

    Joined:
    19th Jun, 2015
    Posts:
    112
    Location:
    Gold Coast
    Is it furnished or unfurnished? Presuming it's a strata townhouse and you are not responsible for the building insurance, and it is unfurnished, $60,000 would generally be considered more than adequate. We have a standard $50,000 in our RentCoverUltra product and this would generally be considered plenty for an unfurnished 2 bedroom townhouse, even in a major loss situation.