I have done a quick search and couldn’t find any recent post about this topic so thought I would throw it out there.
I have just bought my first investment property and it has come time to insure it. I was wondering if people would be able to share their experiences with different insurers be it good or bad? Or any other general tips for picking the right insurance.
As boring as it sounds – read the PDS of the different insurance companies and compare. Know what you are and are not covered for.
Some points to consider:
– Accidental vs malicious damage.
– Loss of rent – how many weeks will be covered and how long till payment kicks in?
– Excess for multiple claims – one excess or excess for each claim?
– Cover for flooding – needed or not needed and what type of flooding is covered. If not needed are you paying extra to get the flooding cover?
– Contents – what is including as contents with your building or LL insurance policy?
– Self managing? – Make sure insurance policy still covers you.
– Fixed term vs month by month lease – understand how the insurer views these
– What expenses are covered should you go to tribunal
These are the points that spring to mind at the moment. I’m sure there are more though but should provide a good starting point.
As boring as it sounds – read the PDS of the different insurance companies and compare. Know what you are and are not covered for.
Some points to consider:
– Accidental vs malicious damage.
– Loss of rent – how many weeks will be covered and how long till payment kicks in?
– Excess for multiple claims – one excess or excess for each claim?
– Cover for flooding – needed or not needed and what type of flooding is covered. If not needed are you paying extra to get the flooding cover?
– Contents – what is including as contents with your building or LL insurance policy?
– Self managing? – Make sure insurance policy still covers you.
– Fixed term vs month by month lease – understand how the insurer views these
– What expenses are covered should you go to tribunal
These are the points that spring to mind at the moment. I’m sure there are more though but should provide a good starting point.
Thanks Kinetic I have been reading through tough going but I’m getting there haha
Thanks Kinetic I have been reading through tough going but I’m getting there haha
It is a house. And I would say I will be safe and get both building and LL insurance.
No worries :)
Ha, yes, not the most riveting reading going around! At least they don’t use so much legalese these days which makes the reading a bit more easy going.
Yes, get both.
One thing I have no direct experience with but have read which makes sense is to have both building and LL insurance with the same company. If you were to make a claim they can’t say “we don’t cover that, that’s what LL insurance is for” then go to make a LL insurance claim and they say “no, we don’t cover that, that’s what building insurance is for”. Helps with the claim merry-go-round.
One thing I have no direct experience with but have read which makes sense is to have both building and LL insurance with the same company. If you were to make a claim they can’t say “we don’t cover that, that’s what LL insurance is for” then go to make a LL insurance claim and they say “no, we don’t cover that, that’s what building insurance is for”. Helps with the claim merry-go-round.
Thanks again that does make sense that way there is no argument who pays!
What exactly is LL Insurance like when you look at a big insurer’s website (AAMI, SUNCORP, COMBANK) its all under a LL heading. My assumption is that LL Building covers the house/building and what you are calling LL insurance is regarding LL Contents insurance?
Sorry, I was being lazy when I was typing – ‘LL Insurance’ is Landlord Insurance so that covers the rental aspect such as rent default and any financial loss connected with it being a rental property. Some cover ‘contents’ but that is generally carpet, blinds, fittings and fixtures, that kind of thing and not the tenant’s property such as their TV or fridge.
Building is for the actual structure so should the place burn down (depending on how the fire started….) the building policy would cover that.
EBM are specialist insurers for landlords which a lot of people I know go with.