Hi
I have a granny flat at the back of a house.
Does anyone know whether the granny flat has to be leased together with the front house or can it be on separate lease?
If on separate lease, will the insurance company covers for the building of both granny flat and also the front house?
And which insurance company covers this?Also for rent defaults insurance, do I take out two separate insurance or just one if it is on separate lease?
Can anyone pls help?
Thanks in advance.
I have just bought a house and we are converting into main house and separate granny flat we intend to lease them separately via the same agent I have also insured the house but when it gets converted to 2 the insurer AAMI told me I need to go to a insurance broker to cover both
I use GIO to insure a unit block that is all on the one title but with each unit separately tenanted. Surely this is no different. Give GIO a call
Regarding the rental default thing, each insurer will have a different name for it. Explain clearly you want to insure the building, and any contents that an unfurnished place has to be insured for (eg floor and window coverings), and that you want landlord insurance that also covers rental default and malicious damage.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
ps let us know how you go. It will be handy for other people in the same situation
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanx Janc and Jac.
I was advised by GIO that if there are two separate tenants, then i need to take out one insurance for the granny flat and one for the house. So it will be two insurances on the same property. Is this right?
Also, under GIO, they dont cover any outbuilding which is used for residential and if there is a separate electric meter from the house. In this case, they advised 2 insurance policy on the same property.
I was a bit confused. Some brokers told me that it is impossible to have 2 insurances for a property.
Does anyone has any advice or experience in this type of granny flat insurance???
I just spoke to GIO and asked them to look at MY policy as an example and explained how yours is essentially the same, except you have 2 dwellings rather than 4. You generally have to kick up a fuss and speak to the teamleader, be clear that it is two separately tenanted dwellings on one title, and that there is no strata and that you could not sell just one of the dwellings – you would have to sell the whole lot together . Insist that the teamleader talks to the underwriter. They told me that you COULD insure the property with them. It seemed to me as though the folk answering the phones were not in Australia and did not understand the concept… for instance, you say it is all on one title and they ask if there is a strata. Then you say of course there is no strata – it's all on one title!! Once they talk to the underwriters it gets cleared up.
Here is the catch. It is one policy per BUILDING. My units are one building with all units within the one building. You have two buildings. However they have told me they can do for you one POLICY with two COVERAGES within it. Since I do not know the property address I could not initiate a quote for you but if you call GIO and ask to speak to "Natasha" who has GIO user number U316079 she will know what you are on about. I have warned her someone will be ringing about this and to not forget how to go about insuring such a property. Good luck – hope this helps!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
JacM,
That's very nice of you to find out the info. I really appreciate it. Tried to contact Natasha, but can't get hold of her as the operator said that there is no way of transfering the call. Anyway the guy sounds very helpful on the phone (GIO). He did mention 2 policy. I told him I want one policy with two coverages within it as it is just one title. And it was fine. I took out the one policy with 2 coverage.
I also asked him to check the the underwriter team. He didnt check with them as he said it was absolutely fine for one policy n 2 coverage.
Thanks for your help.
Had similair issue last year………. CGU covered it …. I find it better to contact a broker who has access to a wide range of insurers in these types of situations.
Glad you got it sorted Elisey……Glad to hear it is all sorted – and now the information is here on the forum for others to learn from too
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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