Insurance Questions
1. Do all insurers insure Rooming Houses?
No, landlord insurance is a special area of insurance. There are many insurers catering to landlords.
2. Who are the most competitive insurers for Rooming Houses?
This changes periodically. A good insurance broker can compare insurers policies and premiums for you.
3. What do insurers require to insure Rooming Houses?
A Certificate of Occupancy from the Certifier is required by insurers. A certificate of occupancy from the certifier. This shows that the builder has delivered a compliant and safe rooming house for tenancy and habitation.
4. Should I get an insurance broker for my Rooming House?
A good insurance broker can compare insurers policies and premiums for you.
5. What is a reasonable excess for a Rooming House claim?
A reasonable excess should be more than the bond of your least expensive room, as the bond protects your rooms from tenant damage. Keeping good relations with your insurer will mean only bringing to their attention serious items beyond the cost of the bond. Keep in mind that new rooming houses have 6.5 years workmanship warranties and the builder should remedy faults in the rooming house of poor workmanship. Fortunately rooming house builders are consistent and effective builders with minimal defects.
6. What is covered in Rooming House policies?
Each policy is different. Please seek the advice of your insurance broker to compare policies and determine what you want insured and how coverage is placed.
7. Are the tenant's possessions covered in Rooming House policies?
They should not be, as it is an excessive risk a lessor / landlord should not bear.
8. Should I insure the tenant's possessions in my policy?
They should not be, as it is an excessive risk a lessor / landlord should not bear.
9. Should I insure the furnishings in my policy?
You can, however most of these items are protected by the tenant bond and periodical replacement is normal. These items are typically less than the bond which your excess should be higher than.
10. Will standard building insurance suffice for a Rooming House?
It can, however we recommend you seek independent advice here from your insurance broker. Vacancy rates are near 0% and re-tenanting is quick and uncomplicated.
11. What is the vacancy rate for a Rooming House?
Near 0%. Most valuers place 4% vacancy now on their reporting.
12. Should I insure for loss of rent in a Rooming House?
It is advised to consider this yes. An insurance broker can advise on how different policies treat loss of rent and their cost to benefit to risk.
13. What isn't covered in Rooming House policies?
Good policies should cover most essential risks that the bond and builders warranty do not cover. Your insurance broker will be a great resource to question here.
14. What other protections do Rooming Houses have in addition to insurance?
The tenant’s bond and builders warranty provide levels of risk protection primarily. Other risks are transferred to your insurance.
15. What are high risk factors for Rooming Houses?
The highest risk for your Rooming House is performance and behaviour of tenants. Badly behaved tenants can disrupt the enjoyment for other tenants, or damage or deface the property so its appeal is reduced. The best way to ensure a great tenant mix is to use an experienced and effective property manager who can vet tenants’ rental and employment history, perform criminal and fraud checks too and check character referees.
16. What are low risk factors for Rooming Houses?
Building performance. Fortunately the standard for dwelling house construction, compliance in design is very high in Australia and tenants enjoy consistent highly performing homes for decades. As time goes on, systems must be maintained such as silicon seals in wet areas and grouting, taps and washers, power points and lighting fittings, paint finishes on walls, door handles and locks, carpet and vinyl on floors, roofing and gutters to be cleaned and concrete and paver walkways to be pressure cleaned.