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Landlord insurance - a beginner's guide

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Your Investment Property | 13 Oct 2011, 12:00 AM Agree 0
Landlord insurance is one of the best buys a property investor can make – but how can you get the most bang for your buck? Kevin Eddy reports.
  • Lesley Bremner | 19 Nov 2012, 11:16 AM Agree 0
    WHEW! an article with some good clear information for a landlord rookie.
  • Griffo | 14 Dec 2012, 08:05 PM Agree 0
    I'd like to know the exact calculation/formula used to determine the value or cost of landlord insurance. It would be good if you outlined how an insurance company figures out these costs.

    I've been building my own investment calculator and now I need to add landlord insurance formulas
  • Angela | 26 May 2013, 10:01 AM Agree 0
    Great article. Clear, concise and all the info I needed. Cheers.
  • JB | 11 Jun 2013, 05:44 PM Agree 0
    I have an older house with ornate plaster ceilings. Does anyone know if these would also be covered under the building insurance ?
  • Scott Hochgesang | 29 Jul 2013, 11:27 AM Agree 0
    I have been looking for a strata landlord policy which will cover new hard wood floors that I put in my unit. They might possibly be covered under the general strata policy, say if damaged by water, but I want to have my own coverage as a back up. They cost about $15,000. Any suggestions? Tony Sheer covers hardwood floors but has a damage cap of only $3000 I think...
  • SPR | 12 Aug 2013, 11:32 PM Agree 0
    In response to JB 11/6/13. I have a rental property and the tenants recently vacated, lease ended. They destroyed the carpets in most rooms, walls were damaged and dirty etc. big mess. When I tried to claim for carpets from insurance, I was advised that each room of carpet that I claimed for would carry an excess !! So I have to re-carpet entire house at my expense. If the cornices were "willfully damaged" by the tenants then ins may cover it. The trick is in defining "willful" damage and "wear and tear" any insurance you take out be very specific in questioning your cover and excess. No matter how silly it sounds, ask the question. Ins is covering the interior painting though. I had to push hard for that. Good luck.
  • Greg | 17 Oct 2013, 11:01 AM Agree 0
    Is there coverage if I live in the house 50% and Holiday Let say 30% with 20% vacant whilst holidaying?
    Apparently this more difficult.
  • MS | 17 Oct 2013, 04:04 PM Agree 0
    Very Helpful!
  • Frank | 01 Nov 2013, 07:26 AM Agree 0
    my readings suggest common traps are malicious damage - what the owner sees as obvious - holes punched in walls, doors kicked out - the insurance company refuses as 'maybe done by invitee - can't be proved - refused'

    similarly common traps are water damage after storms - as you say - overflow, runoff, flood may be refused if not covered separately from damage caused by high wind, lightning strike or trees falling
  • Kate Fairley | 03 Jul 2014, 04:49 PM Agree 0
    The most important thing missing from this article is the requirement for a formal lease to be in place. When lodging a claim for malicious damage the insurer will request a copy of the latest inspection report to ensure the damage was done by the latest tenant and is not minor damage which could be classed as maintenance. Insurance companies will always look for the fine print to avoid paying claims, which is why it often pays to purchase insurance through a broker (I'm an ex-broker turned consumer advocate) because they will fight the battles for you.
    Insurers will always charge an excess for each event so if the damage has been done over a period of time they will charge additional excesses.

    A good safe guard for this is ensuring your property manager is conducting regular inspections, this will reduce the chance of your insurer being able to argue the damage was done over a period of time. Rather you can argue it was done in one single drunken rampage or something similar.

    The largest claim I've ever handled on a Landlords claim was in excess of $30,000 (80% covered by insurance) so it's definitely a must have in my opinion.

    Kate Fairley - Get Informed Insurance
  • Thomas Pearce | 03 Sep 2014, 03:32 PM Agree 0
    I was looking for a landlord insurance for my property before i put it on rent. After a long research and trusty me its important because there are many traps in the industry, I was able to find the best one that satisfied all the points that i was looking for(Rentcover by EBM).
  • Walt | 08 Oct 2014, 11:09 AM Agree 0
    I had to put claim to GIO in Melbourne, and this is the first time in whole my life putting a Claim, and it was a disaster, they really smart under their policy, their rapport mainly all focused and claimed and listed as Wear and Tear on many items at the house, so the bottom line they have used some terminology which of course in the Booklet as for instance Accidental and of course the access was so high for us to ignore and walk away from the Claim as its would an expensive to apply on all, as they do Consider for instance every ROOM as a claim and every claim is a $1000 bucks, so it seems to be Landlord insurance is just a SCAM and not a good way to go , it is just good IF only the whole house got trashed or the whole got burnt which in % would be minimal... so the finally not happy customer GIO so FAR is a BAD Service...
  • Shazza | 13 May 2015, 03:19 PM Agree 0
    Has anyone actually had a good experience with a Landlord Insurance Company when putting in a claim? All I seem to find is bad reports about soooooooooooooo many Companies. There is compare the market for every type of insurance except landlord insurance as far as I can tell. Surely there is someone out there that can tell up property owners who is actually decent and worth our money being paid to.
  • Ian Lambert | 14 May 2015, 09:03 PM Agree 0
    My situation is that I have just purchased a unit in a beach resort at Port Macquarie. This will be in the rental pool for the resort, so it will have multiple short-term tenants through the year, and the returns will vary markedly with the seasons. I need insurance coverage for contents (say $25,0000) and public liability for at least $10 million. I have tried a few companies all of which said they could not provide cover because of short-term holiday rentals (normally from one night to a few weeks) - more or less like a hotel. Any immediate advice on where to get cover would be most welcome. Thanks.
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