Good morning all, just got a shock when I tried to renew my insurance policy with AAMI.
I have the AAMI landlords insurance which covers me for malicious damage, arson, etc from tenants.
However, I live in the house and rent three rooms out. I am thus classed as a boarding house and my insurance is almost totally void.
It turns out that if I was to rent the whole house out, I am covered for everything, but they would not cover it if someone was running a home business from it, or if I am living in one of the rooms.
I find this strange, as me being here makes it a lot less likely for any weirdos or wackos to be staying here, as I will obviously be actively managing the property.
SO, I rang around all of the other insurance companies amp,m gio, nrma, cgu, r+g, and they all seem to say the same, not a problem if you rent the whole house out, but no cover at all if you run a boarding house!
I have also talked to a few brokers, again with little luck. One said I might be able to get insurance if I class myself as a bed and breakfast, as this would be heaps cheaper than being classed as a boarding house.
There must be thousands of people who just rent a room in order to help pay off the mortgage or rent, but we seem to be left in the lurch insurance wise.
I can always go naked insurance wise, but would prefer to be properly covered.
Can anyone suggest where I might be able to get cover? ps I own the home
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