terri scheer landlord building insurance

Discussion in 'Property Management' started by cacioepepe, 14th Jan, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. cacioepepe

    cacioepepe Member

    Joined:
    13th Oct, 2019
    Posts:
    7
    Location:
    Sydney
    Hi,

    I currently have terri scheer landlord insurance policy at the moment as a landlord of an investment property which is a unit in a strata building.

    I note that the terri scheer website mentions in the PDS/terms that the building insurance policy for landlord is NOT applicable if you have a:

    A flat or unit or part of a block of flats or strata titled units (but we will cover you if all dwellings on the same title are owned by you and are insured under this policy)

    My question is why Terri Scheer does not allow this and do you generally have both landlord and building insurance as a landlord of an Investment Property (strata apartment)?

    EG. what if your tenant accidentally causes a fire which burns down most of the interior of your property and why do most insurers not cover this?
     
  2. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

    Joined:
    6th Jun, 2017
    Posts:
    1,303
    Location:
    Sydney
    Hi, the strata will have their own separate building insurance to cover the building (which you indirectly pay for as part of your levies). Otherwise you wouldn't be able to determine an accurate replacement value of your part of the building, or your share if there was a claim say for the roof.

    Terri Scheer's landlord policy actually covers a portion of building ($60k from memory) which I believe would apply in your scenario where the interior is damaged by the tenant.
     
  3. cacioepepe

    cacioepepe Member

    Joined:
    13th Oct, 2019
    Posts:
    7
    Location:
    Sydney
    thanks that makes sense. but does the building insurance that is covered by strata cover things inside your apartment i.e. fixtures? e.g. replacement of kitchen bench /carpet/tile/repainting etc.?

    Just want to make sure I am not missing out on something that I should be taking out as insurance that is not typically covered outside of landlord insurance nor the building strata.
     
  4. Dan Wood

    Dan Wood Well-Known Member

    Joined:
    18th May, 2019
    Posts:
    352
    Location:
    QLD
    In what event would you those items replaced or repaired?

    You need to check the companies policies to see what's covered.

    Here's an example
    EBM cover
    Fire damage to contents
    Malicious tenant damage to fixed contents and building
    Pet damage to fixed contents and building
    Storm damage to content
    Water damage to contents and building
    Theft by tenant
    Accidental tenant damage to fixed contents and building

    You have to do your own due diligence, everyone is different, every company is different..

    EBM Landlord Insurance | Compare Policies | EBM RentCover
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,334
    Location:
    Sydney or NSW or Australia
    Generally not. They are inside the area defined on the strata plan.

    Even the paint/wall paper is yours to replace if the bathtub upstairs damages your ceiling. Strata's insurance will repair the ceiling.