Hi, I’m new to property investing. I’m in the process of finding tenants for my first investment property.
I was told that landlords insurance was a good idea, so I did some research, and came across TICA (www.tica.com.au) which provides landlords insurance. The application form:
http://www.tica.com.au/files/tica_application_form.pdfseems too good to be true. In that its offering Landlords contents, Legal Liability, Fire, Malicious damage by tenants, Rent default with a nill excess, all for $225 in Victoria.
I’ve read the PDS, and the only thing that worries me is:
“Provided that no claim will be admitted until such time as any monies collected under the state legislation applicable
to residential tenancies are exhausted.” Which to me mean that they will not pay up, until it goes thru the whole legal process. Which may be never!So my questions are: Does anyone know anything about TICA, and does this LandLords insurance policy sound too good to be true?
ps.
Glad to be finally on board the forums, after a lot of reading!Hi there
I can’t comment upon the particular insurer that you are looking at – but I can say that I have made claims on my landlord’s insurance.
The first instance was as a result of the Canberra bushfires where we lost 2 properties and also more recently when there was accidental damage to one of our properties in Toowoomba. The particular insurer was Wesfarmers and we did not have to exhaust all legal options before our claim was paid. We just provided the evidence required to the insurer.
By the way – we are now insuring some of our properties with AAMI as they seem to have a better replacement provision – and once again we have had no problems making claims with them with respect to damage to our vehicle caused by a kangaroo.G’day raddles…
Sounds like it’s “lucky you’re with AAMI“….
(Sorry couldn’t help myself)
Originally posted by Captain M:Hi, I’m new to property investing. I’m in the process of finding tenants for my first investment property.
I was told that landlords insurance was a good idea, so I did some research, and came across TICA (www.tica.com.au) which provides landlords insurance. The application form:
http://www.tica.com.au/files/tica_application_form.pdfseems too good to be true. In that its offering Landlords contents, Legal Liability, Fire, Malicious damage by tenants, Rent default with a nill excess, all for $225 in Victoria.
I’ve read the PDS, and the only thing that worries me is:
“Provided that no claim will be admitted until such time as any monies collected under the state legislation applicable
to residential tenancies are exhausted.” Which to me mean that they will not pay up, until it goes thru the whole legal process. Which may be never!So my questions are: Does anyone know anything about TICA, and does this LandLords insurance policy sound too good to be true?
ps.
Glad to be finally on board the forums, after a lot of reading!you generally must offset any loss against the tenant’s bond money first. I think this is what is being referred to above.
Terryw
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Yes, I agree with Terry.
We had a tenant do a runner and owed rent, left some minor damage and rubbish.
We went through the normal process with the agent of applying for the bond money, going to tribunal and then putting in claim for damage/lost rent etc after this.
Whole process took a couple of months to get the money. Not a big problem really – more of a nuisance.
This hasn’t put us off either; we accept that there will be the odd problem like this – part of the deal I’m afraid. Most people are good.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
We have used EBM insurance and can say from experience that they came up trumps, beware banks insurance, too many get out clauses.
im about to settle on a few regional properties and need to look into landlord insurance.
how much do they typically cost pa.
cheers
markHi there
why not have a look what is available for the particular property you are buying – the actual premium depends upon whether it is a strata title arrangement or home, the postcode of the area, the type of locks on doors, windows etc, the size of the home, the nature of the fittings – it is also cheaper to purchase online
for example
http://www.aami.com.au/insurance_quotes_australia/insurance_quote_terms.asp
is worth a look.
I note that we spent about $165.00 on the last property we purchased.Check Excess- per event
Scope of Cover
EBM provide a specific tenent damage/ rent default cover but this does not cover the building against Fire and Perils.
This was how i saw it ie you need 2 policies.
Distinction between normal wear and tear and malicious damage is crucial when claiming.Originally posted by r@50:im about to settle on a few regional properties and need to look into landlord insurance.
how much do they typically cost pa.
cheers
markIt really depends on the location of the property, and the what kind of locks/alarms are fitted in your property. For my investment property in the Northern suburbs in melbourne, I haven’t been anything for less than $350, including tennant rent default/theft. So thats why I though the tica deal for $225 was pretty good.
ING also offers a good deal, but for around $350(prices will differ for your property). Their conditions are pretty good too.Hi everyone,
1st of all Landlords insurance is relative to whether you have the property managed by an agent or that you do it yourself. There are a number of companies out there that provide Landlord insurance. Premiums depend on self managed or agent managed then where the property is located.
I work for a company who specialise in this area of residential tenancies (my father and I are investors to which has helped us in the development of these products) and has developed a number of products that help you and your agent manage your property. Note that there are a number of costs that insurance does not cover.
I’m happy to talk to anyone about this so just drop me a line. You can also check out http://www.barclaymis.com.au.
Our services include some of the following (but are not limited so if you have an existing property please contact me);
Preventative Services
• A professionally designed Tenancy Application Form (TAF).
• A 100 “Check-Point” system that works in conjunction with the TAF.
• “Fast Track”, Australias only true national tenancy data base which will allow you to check prospective and existing tenants rental history.
• “Demand-On-Web”, a series of third party letters designed as a back-up to your initial requests for rent outstanding.
Recovery ServicesThis Plan provides access to the following full debt Recovery Services, with no excess, no added costs, commissions or legal fees:
• Tenant Skip Trace and Search
• Judgement of the Original Certified Order as supplied by the Managing Agent
• Preparation of legal documentation including Warrants and Affidavits
• Examination Hearings
• Garnishee Orders
• Collection of payments from tenants
• Recovery of money owedLook forward to speaking to you all
Ben
Captain M with regards to your issue if you go to your states tribunal and get a oder for monies owed less the bond the insurance will generally pay out on that. Note that the legal process for residential matters is different to and DOES not affect a tenants credit rating.
As for Landlords insurance well it is a necessary evil unfortunatly and as for TICA they are nothing more than a tenants database company which as agents and soem private landlords subscribe they have just NTD (National Tenants Database which is owned by Baycorp) or Barclay MiS Fasttrack (which i own) these are teh three biggest in the country and offer different services.
TICA provide the policy on behalf of St Gorege if memory services me right. Drop me line happy to talk ot you some about your issues.
Ben
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