Landlords insurance

Discussion in 'Property Management' started by Simon Hampel, 12th Dec, 2008.

Join Australia's most dynamic and respected property investment community
  1. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,393
    Location:
    Sydney
    I have landlords (and building) insurance via CGU, and I just found out that they have implemented an additional $400 excess (total $500) for any event relating to loss of rent where the tenant leaves your property, ceases paying rent, or is evicted.

    They are obviously trying to avoid most of the minor claims they would receive for loss of rent for a couple of weeks between tenancies ... but still, $500 taken out of your claim is a pretty significant amount - in some cases this could be 5+ weeks rent (in my case it's about 2.5 weeks).

    I'm thinking it might be time to look around and see whether there's a better deal out there for landlords insurance and/or building insurance.

    Anyone have any feedback on other insurers (not brokers, I'm interested in the actual insurer policy) ? Specifically looking for feedback from those people who have actually made claims - your experiences with their product and service ?
     
  2. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    Hi Sim,

    Just made a claim through Terri Scheer with no problems. Terri Scheer is owned by Vero who is owned by Suncorp. Only $100 excess.

    Terri Scheer's Landlords insurance in QLD is $255.

    Property mgrs seem to really like Terri Scheer (perhaps they get some small commission). Although there would be a number that do this. However property mgrs I deal with like TS based on experience with claims. I do insure directly with TS though. You must have the property managed by a prof prop mgr to use them.

    Cheers - gordon
     
  3. Smartypants

    Smartypants Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    202
    Location:
    NSW
    Hi Austini.

    Does the $255 cover the actual house insurance as well, or does that figure just cover the landlord insurance component.
     
  4. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    No, just contents such as carpets, curtains etc, public liability and tenant related issues as are typical of landlords insurance policies.

    The policy detail would be in their booklet which would be online.

    Cheers
     
  5. BillV

    BillV Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,555
    Location:
    Sydney
    Sim
    Have they sent you a letter informing you of this change?
    They have to notify you because your renewal document which they send every year is stating the amount of excess..
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,393
    Location:
    Sydney
    The renewal document says:

    "Excess applicable to all above $100. Additional excesses apply for claims for earthquake, tsunami, vandalism or malicious acts by tenants, deliberate or intentional acts by tenants, rent default and theft by a tenant. These are shown in the policy wording."

    The excess amounts in question are just added to the base level of excess that you pay as part of your policy, and as such they can vary them at any time by issuing a new policy document.
     
  7. BillV

    BillV Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,555
    Location:
    Sydney
    Sim

    I had a look at the policy booklet and you are correct.

    The CGU policy booklet states that the excess will be increased by $400 ( total of $500) for any loss or damage that occurs as a result of:
    • deliberate or intentional acts, or vandalism or malicious
    acts by your tenants or their visitors,
    • your tenant leaving your building,
    • your tenant ceases to pay rent,
    • your tenant being evicted from your buildings, or
    • the theft of any part of your buildings or contents by
    your tenants or their visitors.

    The low excess was the reason for choosing CGU in the first place.
    Now that this has gone to $500 they've lost the advantage they once had and it's time to shop around again.

    My NRMA policies have $300 excess
     
  8. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
    Thanks for bringing this to my attention, Sim. Time to review and change over to someone with lower excesses, methinks. Let us know how you get on and find any more favourable insurers.
     
  9. SteveB

    SteveB New Member

    Joined:
    1st Jul, 2015
    Posts:
    3
    Location:
    Sydney
    It's getting to the stage that you may consider not having landlords insurance.
    I just put claim into CGU and the excess was $350 per claim (2 claims) total claim $2,200, when the excess comes out it really hurts.
     
  10. k_veg

    k_veg Active Member

    Joined:
    4th Sep, 2016
    Posts:
    43
    Location:
    Sydney
    Any updated quotes?

    I'm hunting around for landlord's insurance now. I'll be using an agent to find a tenant, but then managing the property myself (9.13% of rent incl. GST is a bit steep!). So I need an insurer who will allow this.

    Any current suggestions with a low excess?
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia