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  1. #1
    Join Date
    Jun 2010
    Posts
    167

    Default How to save money on insurance?

    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...

  2. #2
    Join Date
    Apr 2005
    Location
    Wellington
    Posts
    1,584

    Default

    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!

  3. #3
    Join Date
    Apr 2005
    Location
    Wellington
    Posts
    1,584

    Default

    Also, pay annually in advance, if you pay monthly they charge an extra 10%.

    Pay by credit card and you can get AirPoints too.

  4. #4
    Join Date
    Nov 2009
    Location
    North Shore Auckland
    Posts
    565

    Default

    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.

  5. #5
    Join Date
    Aug 2009
    Location
    Manawatu - Palmerston North
    Posts
    208

    Default

    TomW - look up your local insurance broker. Thus costs you nothing and they may be able to cut your costs.

    Regards
    Aaron

  6. #6
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    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

  7. #7
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,733

    Default

    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.
    .
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  8. #8
    Join Date
    Nov 2008
    Location
    Karratha WA
    Posts
    1,444

    Default

    Get several firms to quote and let them know they have competition. With that many properties you will be in demand. We got 25% off total premiums by doing that earlier this year. (and funnily enough they all ended up around the same figure)
    Last edited by Perry; 16-08-2010 at 10:25 AM.

  9. #9
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,733

    Default

    The perennial problem with taking out insurance
    is that you wont know how good a deal you've
    got until you make a claim!
    .
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  10. #10
    Join Date
    Aug 2005
    Location
    Hamilton
    Posts
    107

    Smile 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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