Variation in insurance quote

Discussion in 'Property Management' started by Fernfurn, 19th May, 2019.

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  1. Fernfurn

    Fernfurn Well-Known Member

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    I have two houses side by side. Both 4x2, both brick veneer, both tile roof, one with two car garage built 2016, One without garage, built approx. 1980s,- but both pretty much the same. The older one without garage consistently comes up nearly $200 dearer for the same policy at difference coys and the insurance company reps are shocked too, but cant advance a reason for this. One said council might have given some info that became relevant but I rang the council and they said they never give insurance companies info. So I am fascinated to find out the difference? Does anyone know, or hazard a guess what insurance coys base their quotes on?
     
  2. Joynz

    Joynz Well-Known Member

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    Could be related to age of the house - that is always one of the questions.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    values of the property would be different too.
     
  4. wylie

    wylie Moderator Staff Member

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    We have a similar scenario with adjoining properties, different street addresses. Both similar Queenslander properties, and one premium is $200 more. Insurer couldn't explain the reason. There's nothing I can do about it.
     
  5. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Variations for the same property year on year can be substantially different with no explanation. I'm not referring to standard increases, I have seen the same policy double in price at renewal with no explanation from insurance companies.

    As mentioned above maybe there is an increased risk factor with the older one? (Eg. Wiring deteriorating etc). I don't know just a thought.

    - Luke
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Group un-discount :confused:
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Is the replacement cost exactly the same?
    I would say that an older structure is more likely to have issues when it comes to repair after an insurable event whereas as new property won't. For example if a tree fell through and damaged the roof on the 80s one the remediation work may be required to bring items up to modern BCA code which could be more expensive.
    I would also guess that a house without a garage is a higher risk too. If that same tree fell on top of the cars instead of the roof the damage toll might be higher to replace the cars than replace the roof
     
  8. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I personally think the difference is fully due to the age of the home (definitely agree with your comments there- bang on), but that's an interesting thought on the garage point too!