Landlord insurance- self managing property

JimB on 27/07/2016 - 11:14
Last edited 27/07/2016 - 11:16

I'm renting out an oldish house which will be knocked down in a couple of years so I'm not too precious about it.

However I would like to be covered for loss of rent and any malicious damage. If they damage it and move out when I'm knocking it down, then I'm not too worried, more worried they don't pay rent and then damage the place when I evict them before I plan to knock it down.

So does anyone know which insurers cover you for loss of rent if you self manage the lease? I know AAMI do but Allianz don't.

Any other insurers I should look out for.

I figure the I money I save on an agent is worth it if I can get loss of rent insurance. I drive past the house 5 days a week so it's not much work if I need to inspect or tell the tenants to cut the grass etc.

FYI, I have an agent manage another rental property so know the benefits of an agent (they don't very little when you have good tenants but are useful with shitty tenants).

Financial

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True Bargains on 27/07/2016 - 11:42

Try Terri Sheer. I use them and I found them pretty cheap. They even have a policy that covers airbnb rentals.
- JimB on 27/07/2016 - 12:10
  
  I'll see if they will allow Self Managed.
  
  They may be cheap, but have you been able to claim?
  
  I know people don't report good experiences but there seems to some bad reports on http://www.productreview.com.au/p/terri-scheer.html
  
  To be fair,all landlord insurers get bad rapts on there.
- CLoSeR on 27/07/2016 - 13:25
  
  Terri Sheer are one of the best for Landlord Insurance, they are part of the SunCorp Group like AAMI.
SirFlibbled on 27/07/2016 - 12:10

CBA used to do a policy. Not sure if they still do.
- JimB on 27/07/2016 - 12:13
  
  I knew someone who worked for CBA (different department) who had to make a claim on damage, they suggested to go elsewhere as it was very very slow. They paid up at the end, but imagine what it would be like for someone who didn't work for CBA.
- lupiter on 27/07/2016 - 12:41
  
  I used to work for people who assessed for CBA. I would never buy insurance from them, they had so much arbitrary "process" which I'm sure was just to encourage people to give up on claims.
- dasher86 on 27/07/2016 - 14:09
  
  CBA insurance is a long drawn out process… don't go with them.
boomramada on 27/07/2016 - 13:33

Both AAMI and Alianz cover it as optional. But its not worth it, soon as rent owe you > bond amount. you would kick them out :)
- JimB on 27/07/2016 - 13:38
  
  Allianz don't cover you for rent arrears if you are self managing the property.
  
  Kicking tenants out isn't as fast and straightforward as you expect, at least in Victoria.
  - boomramada on 27/07/2016 - 14:07
    
    I just checked, AAMI does. When I do the maths, not much benefit.
    Premium goes up by $200, and only cover up to 15 weeks with access of $1000.
    In my case I didn't thought its value for money based on risk vs benefit but mine is property managed tho.
    - JimB on 27/07/2016 - 14:57
      
      I see your point, but because I'm not going via an agent, I can use the savings (2 weeks for letting the place) towards the extra premium.
      
      Insurance is one of those things which you only know the true value of when you make a claim.
ms_caz on 27/07/2016 - 19:51

I can't help you specifically with insurance applicable to self managing properties, but i can let you know that we are insured with EBM Insurance Brokers who seem to be underwritten by QBE. I know that when we researched landlord insurance companies they received good recommendations and reviews - as indicated, you don't really know until it comes to the crunch. And on that note I feel compelled to shout loud and wide - avoid Budget Direct LIKE THE PLAGUE!!!!!
- JimB on 28/07/2016 - 11:32
  
  Thanks, good to know.
  
  I've had good experiences with QBE owner building insurance claim so will check them out.
  
  I'm currently with Allianz LL insurance for my other property, hopefully it's decent.
  - JimB on 17/08/2016 - 11:47
    
    I ended up signing up with EBM Insurance Brokers.
    
    Found a promo code for 2 months free, so ended up being quite a bit cheaper than Terry Scheer.
    
    Both EBM & Terry Scheer seem to be very good policies.
    
    I will consider EBM when my agent managed property insurance renewal is up, however the tenants in the other property have been in there for a few years and are very good so it's unlikely I need landlord insurance for that property.

Landlord insurance- self managing property

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