First Time Home Owner for Investment Property - Landlord's Insurance Not Available? (EDIT: Sharecover?)

raquethead111 on 21/04/2020 - 12:27
Last edited 21/04/2020 - 13:45

Given COVID-19, it seems like there is an embargo on landlord insurance. Now, we have been recommended landlord insurance left right and centre to be covered for tenants that might cause malicious damage, but given that this isnt' offered, we are now wondering whether it is worth getting it at all.

For context, we will probably be moving in after 6 or 7 months anyway, so am having a hard time justifying taking the insurance out.

Separately, if anyone knows if any insurance companies are offering landlord insurance with tenant protection, please ping me!

EDIT - After some digging, I found this: https://sharecover.com/products/short-stay-apartment-insuran…

Wondering if anyone has any thoughts?

Thanks all!

Financial

Comments

  • tm32 on 21/04/2020 - 12:51

    Are you looking at the mainstream insurance brands only. Some seem to have removed landlord coverage as options or entirely.

    Have you checked the specialists EBM and Terri Scheer for what is on offer in the current environment.

    • raquethead111 on 21/04/2020 - 13:32

      I've had a look at these guys and neither are offering policies unfortunately :(

    • Seraphin7 on 21/04/2020 - 13:54
      +2

      As an aside, I find it extraordinary that specialist insurers have simply exited the market … shows just what a dog's breakfast this whole situation has become.

  • ms_caz on 21/04/2020 - 13:02

    I know it is a difficult situation at the moment and LL insurance with all eventaulities included is the best option, if rental default is not available (ie just malicious damage) I would still choose to take up insurance.

    We had a nightmare tenant who cost us $20K. As well as rental default, aproximately 2/3 of that sum was malicious damage. Even though this extent of damage is unlikely in most circumstances, paying insurance for the risk of just such an event is worhtwhile.

    • [Deactivated] on 21/04/2020 - 13:09

      Did you take any legal action against the tenant?

    • raquethead111 on 21/04/2020 - 13:33

      So sorry to hear that - that really sounds like a nightmare.

      Annoyingly, malicious damage is also not covered for some strange reason…

      Do you have any ideas on who to go with in this environment?

  • [Deactivated] on 21/04/2020 - 13:08
    +1

    we will probably be moving in after 6 or 7 months anyway,

    Are you currently renting elsewhere? It would be easier to break your current lease and move into your property.

    • raquethead111 on 21/04/2020 - 13:34
      +1

      Living at home. Financially makes sense for us to let the lease run out, which is why we are looking for LL insurance if there is anything available out there.

  • robbyjones on 21/04/2020 - 13:59
    +1

    We recently took out Landlords insurance with QBE.

    • WreckTangle on 21/04/2020 - 20:40

      In the past 2 weeks?

      • robbyjones on 22/04/2020 - 19:57
        +1

        No, end of March but I think they still offer the same policy, just doesn't include missed rent payments but malicious damage is still covered. The policy was reasonably priced too.

  • spottydog0 on 21/04/2020 - 15:02
    +4

    Commbank still look like malicious damage is covered just not loss of rent for new policies

  • WreckTangle on 21/04/2020 - 20:40
    +2

    Was similar boat, couldn’t find anyone selling it either.

    All decisions based on Incompetent Government policy

    • raquethead111 on 22/04/2020 - 09:46

      Looks like QBE and CBA do malicious damage still

  • Choc83 on 22/04/2020 - 17:37

    You just have to be diligent when it comes to selecting a tenant.

    My agent is pretty good at looking at payslips and bank statements showing savings.

    You're in a good position of being able to be selective with applications now, rather than people who had contracts set up before covid hit.

    If you want certainty, maybe offer a discount for upfront payment? Something like pay 11, get 12 months kinda thing. You might have to factor in vacant property over Xmas on occasion over the years.

    • [Deactivated] on 22/04/2020 - 18:04

      My understanding is that the tenant probably came with the house.

      • Choc83 on 22/04/2020 - 18:12

        fair enough. Maybe just a case of speaking to the existing property manager to get reassurance about the tenant.

        The PM has access to the tenant's financial details (income/savings) and you could just be a five minute phone call away from getting a sense of relief.

  • Yamun121 on 26/04/2020 - 19:52

    Signed up with CUB insurance, just two days ago, price was competitive with AAMI, but still covers tenant/pet damage (not rent)

    • raquethead111 on 12/05/2020 - 22:16

      @yamun121 What is CUB insurance? I can't find it…

      • Yamun121 on 14/05/2020 - 07:27

        Sorry CGU lol

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