Anyone know any tips for saving money on insurance for investment properties? Have over 25 rentals now and insurance costs are pretty high in terms of cash. Iv heard having smoke alarms can save you 10% but im not too sure...
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I have a number of rentals too and have very good prices with Tower. The easiest way to save money is to have a higher excess, mine are all at least $1,000. You can take off fixtures & fittings, loss of rents, public liability and all the other things they add on to increase the price, often without even asking you. Make sure you get full no claims bonus. Best to keep Full Replacement Value over Market Value though, even if it costs a little more.
I ring them every year to tell them they are too expensive, and ask them for ideas on how to reduce the price, and give me a better discount. You can tell them you have received a better offer elsewhere which you are considering but would like to give them the chance to sharpen their pencil.
I think a lot of people pay too much for insurance. As an example I have a 100+ year old multi-flat property about 160m2 worth $575K which from memory is insured for a little over $300pa. When I ring up now the staff say they literally can't reduce the premiums anymore and they are quite surprised at the prices I am paying.
I've been with Tower for 15 years, have many properties insured with them, and they've never paid me any money out in a claim, so I am sure that that helps too.
Good luck!
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Like spurner, I've a $1000 excess.....literally halves the premium.
But I think that some insurance companies are better than others at paying out....I'm with NZI and have been very happy with the service. Had bit of a flood once and the agent was on site within 30mins of phoning....this at 10pm on a Sunday night. Even managed to negotiate and did some work myself, hence saving myself the excess. Certainly worked to my advantage.
Would also check what the policies cover....my policy also covers loss of rent should the property be uninhabitable due to damage etc.....very handy.
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State have sent me a renewal for one property for $800.
Have just had a quote from AMI for $480.
Someone is going to really sharpen their pencil or may be get a felt pen."There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx
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I concur with Property Man: a broker can
offer a range of pic 'n' mix options that are
good. Sometimes in a way that is not poss-
ible for individuals to achieve,. Also, if the
broker is worth their salt, they'll deal with
everything - as your agent/intermediary -
if you do have to make a claim.
.
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Insurance Broker
We have had great experience with using a broker. We did have a couple of large claims, one was a house burnt down, due to an arsenist. The other was burglary and flooding. The company we were with at the time had a dummy spit and decided to double our premiums and add a $5000 excess. Well needless to say there was no way we were going to accept that. Our broker shopped around and found that by grouping some properties we could get an exceptional rate with one company, some insurance companies don't like small areas, some don't like old houses and some are more flexible.
With 25 houses you should get a good deal, our rates certainly started to get cheaper when we went over 45 houses.
We ended up with 2 insurance companies, $1000 excess and we pay every quarter in advance.
I'd suggest you shop around for a good broker. Could definately recommend one for anyone in the Waikato area.
Regards
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Hi All,
I am pleased that you are all commenting on this subject.
The Insurance costs depend on a number of things which if you go direct are never going to be in your favour.
The best way would be to pm me and I could help.
I am from the Waikato Area.
Trevor Jones
Rothbury Waikato
(07) 834 6186
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When increasing the excess on house insurance, check to see if there is any excess buy out option available for windows.Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
My Website
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