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I got a nasty shock last week with my insurer advising me that that the premium for a particular rental property will increase by 25% this year. I’ve been with the insurer several years, no claims have been made, no change to the insurance coverage or terms and it’s not located in a high risk area.
When I quizzed the insurer about the increase it mentioned much of it was due to increased Government levies (EQC in particular) and in part because insurers are seeing increased risks with rental properties.
It was suggested I increase the excess to bring down the premium. An option exists to increase the excess up to $2000.
I was wondering whether other property investors have taken this road? What do you think? Any drawbacks?
I had read of some landlords opting for increased insurance excess because a law change in 2019 with respect to tenant liability for damage made them liable for careless damage in a rental property, for the cost of the damage up to four weeks’ rent or the landlord’s insurance excess, whichever is lower.
When I quizzed the insurer about the increase it mentioned much of it was due to increased Government levies (EQC in particular) and in part because insurers are seeing increased risks with rental properties.
It was suggested I increase the excess to bring down the premium. An option exists to increase the excess up to $2000.
I was wondering whether other property investors have taken this road? What do you think? Any drawbacks?
I had read of some landlords opting for increased insurance excess because a law change in 2019 with respect to tenant liability for damage made them liable for careless damage in a rental property, for the cost of the damage up to four weeks’ rent or the landlord’s insurance excess, whichever is lower.
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