What Insurance & Which Company?

[investernewbie]

Anyone notice huge increase in Rental Property insurance this Year?

Hi Everyone,

I noticed my Rental Property insurance fee has went up by at least 30% this year. For example last year i was paying $750 for one of my rental property insurance (i have family and friend discount with this insurance company 30% off premium), now this year for the same insurance the quote is $1000. I spoke to my insurance company today they said it's to do with recent increase insurance claims on P Contamination. They had to increase the insurance premium across the board for insurance under rental properties.

Has anyone noticed increase to their rental property insurance? is it justifiable for them to increase the premium by 30%?


Thanks

[Bobsyouruncle]

We just negotiated a decent discount with our provider. Insurance companies are a law unto themselves so I guess the answer is they can do it. Whether they could ever justify it, who knows!

[investernewbie]

We just negotiated a decent discount with our provider. Insurance companies are a law unto themselves so I guess the answer is they can do it. Whether they could ever justify it, who knows!

Comparing your rental property insurance to last year. Has it went up? if so, by how many percents?

[Bobsyouruncle]

Ours reduced by 15% after negotiation.

[Bobsyouruncle]

Here's what's happened since the GFC:

[investernewbie]

Ours reduced by 15% after negotiation.

Thanks for the info. Which insurance company your with? you mind to pm me?

[Bobsyouruncle]

We are with AMI. There is a very good broker here on PT. I think his handle is Laney.

[investernewbie]

We are with AMI. There is a very good broker here on PT. I think his handle is Laney.

Great Thanks

[flyernzl]

Try Initio.

[investernewbie]

Try Initio.

Thanks for your recommendation. Their quote are so much cheaper and it's online. I have not heard of this insurance company before. Have you had much experience with this company?

[flyernzl]

I have several properties insured with them, but have yet to lodge a claim.

They are the NZPIF recommended insurer, so investors should be well treated otherwise word will get around the industry.

[investernewbie]

Thanks for your recommendation. Their quote are so much cheaper and it's online. I have not heard of this insurance company before. Have you had much experience with this company?

I could not find cover for P / Methamphetamine contamination under the policy wording. Do you know if it does under??

[Quinovic - Kent Terrace]

Hi!

Yes unfortunately insurance is going up for many landlords because of that and also because of the recent law cases (eg, the Osaki case) where the landlord was found liable due to the balance of probabilities that the damage on the rental property by the tenant was unintentional and the landlord was insured.

On our website, we have a popular post on what you should look out for when getting insurance for rental properties, if you're interested - goo.gl/dbA3N2
Quinovic Property Management - Kent Terrace

[Bobsyouruncle]

We looked at Initio, the cover/policy wasn't good. There are huge variations between companies now you really have to read the fine print.

[investernewbie]

Hi all,

Do you think it's necessary to have meth contamination cover under your insurance company? I remembered someone in this forum said that if you claim meth contamination damage compensation through your insurance the insurance company is liable to contact Auckland Council. This eventually will be recorded on your LIM report. This will have a adverse impact on the property's value. Is this true??