What To Look For With Landlords Insurance

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When looking into landlords insurance what are some things you should look for?

Ryan: [Louis 00:00:00] has got another question. When looking at landlord insurance, is there things in particular you should look at who you insure through? So do you look for anything in particular with landlord’s insurance I guess.

Ben: As someone who’s just had like a major landlord’s insurance claim, literally over the last ten weeks has been my life, I would be looking for different things than I was looking for before I signed up let’s just say that.

Ryan: Yup.

Ben: So I’d making sure that …

Ryan: So let’s just say from the outset as a disclaimer that we can’t give insurance advice. I think it’s one of those …

Ben: This is not advice, this is just questions to think about when reading the policy.

Ryan: Yeah.

Ben: You need to look at the term of how long they will pay for rent if they, if you lose a tenant. Because I expected like I lost a tenant for like 16 weeks because of the damage they [inaudible 00:00:55] this property and I expected the 16 weeks to be covered, then I read the fine print it was we cover up to six weeks.

So that was a big lesson. I also would definitely look at the way that they process claims and how they handle claims and how you escalate claims if you need to. I would 100% be looking at what they determine like, I don’t think I know how to pronounce word like … maleficent damage or what it’s called like?

Ryan: Malicious damage?

Ben: Malicious damage, sorry I just couldn’t remember the word. But the way they handle malicious damage and what is considered damage and what is considered not because as I’ve just found out you know like a lot of the things that you know punching holes in walls, breaking windows seems like damage.

Ryan: That sounds like malicious damage.

Ben: But they wouldn’t replace the glass it was like well that could have just happened. I’m like well how did seven windows in one house in one day get busted like I think that’s someone going on a rampage. I’ve learned a lot about it and I would definitely be [crosstalk 00:01:58].

Ryan: So they consider, are they saying that that could have just happened you know some kid kicking a soccer ball around or something and a window breaks so it’s not malicious?

Ben: Yeah I’m like well here’s my police event number, two events in one day like does that help?

Ryan: Here’s the newsroom clip of my house on the news.

Ben: Yeah. Did you … and so what I also learned is my landlord claim, I put it in, that was about 12,000 dollars worth of stuff in terms of lost rent plus damages that I could claim.

They paid me 2,000 dollars. I sent them a very intense email like threatening email and then the next day they paid me an extra six and a half K on top. So obviously it’s a strategy to pay the least they can and hope that nobody questions it or comes back.

What I’ve learned from this process of going through insurance in a major way, every single time they attempt to pay out the claim, challenge it, escalate it and you know push for something more.

Ryan: Yeah and watch the Incredibles because he works for that insurance company. Have you seen that movie recently?

Ben: No.

Ryan: He works for an insurance company when he’s not allowed to be a superhero anymore and like his boss like wants him to never allow any claims to go through.

He’s like helping all these people actually get their claims through so yeah. And I’m sure insurance companies aren’t stoked to just hand out money so I’m sure you’d have to fight for it.

Ben: Yeah, this company definitely wasn’t.

Ryan: Hey guys, I hope that you enjoyed the answer to this question which came from my live Q&A episode with Ben on YouTube. We will be doing more of these in the future.

If you want to check out Ben and he is offering free strategy sessions to On Property listeners. To find out more about that go to onproperty.com.au/session and you can see all the details over there. That’s it for today and until next time stay positive.

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