Hi All,
Very disappointed with Woolworth Landlord Insurance. Just got a renewal notice, price increase by 37% and have reduced the amount of coverage for non-paying tenant.
I contact live-chat, and they said that you get a 30% discount of signing up online.
So if I want the previous price I need to cancel my insurance and re-signup.
Anyone else experience this? Any good cheaper alternatives. Not interested in having to resign-up every single year
Make sure you double check PDS as many insurers do not provide cover for rent default anymore due to COVID19
Be very wary of this.
I am with Allianz and they do not offer rent default cover to any new policies.
They have also changed the cover from $10K per instance to $10K per annum.
FYI Allianz increased my policy by just under 20%.
Most of them are doing this. Westpac insurance is the same
We’re not currently offering Landlord Extras cover, which includes cover for loss of rent due to default by tenants, to new or existing Landlord Insurance customers
Also, in the case of Westpac, they will deny any claim anyway, so it is a worthless policy. If you have ever seen the film 'The Rainmaker' with Matt Damon & Roy Scheider, then that's what Westpac do.
It's called lazy tax.
I jump between companies every single year for every insurance policy I hold.
You don't need to cancel your policy. Just let it lapse and start new policy on same day …..
It's normally cheaper/better to shop around or get a 'new' online bonus each year than to renew. Cost/benefit of the time vs the savings. I have been told by AAMI to always call before deciding to move as they do offer better rates over the phone when they know you're going to leave - I had them knock $100 off the online price recently this way for car insurance.
AAMI ALWAYS have a ridiculous renewal price, and then you call up and they magically find 25-30% off. However, i was told by my mortgage broker that some companies (especially landlord insurance) are NOT taking on new clients because of covid
its called the "lazy tax"
I strongly disagree with this name and I suspect it was invented by the insurance companies itself.
Calling it a "lazy tax" somehow blames YOU (e.g. the victim of corporate greed) for the price rise. You lazy so and so, you didn't do the right thing and shop around, you let yourself be taken advantage of!
Nah - f—k that noise. Insurance companies are scum and out to get you. Let's call it for what is it - the "Insurance companies are scum and out to get you" tax.
Just got a renewal notice, price increase by 37% and have reduced the amount of coverage for non-paying tenant.
Not sure if you have noticed, but with have a global pandemic happening at the moment. In Australia, we have high empty rentals, house prices are set to dip 20-30% in the coming months/year, unemployment is highest its been in a long time, and scheduled to go higher.
All these things have to be factored into the insurance policy which you want coverage for :)
Its going to be a rough road ahead for everyone!
So it should be cheaper then?
Not at all, All those things will mean the landlord will be MORE likely to claim on the insurance policy. ie people just giving up paying rent, so landlord will be claiming missing rent via insurance.
This is not the case, as the insurance companies are removing the ability to claim for unpaid rent.
i.e. people just giving up paying for rent, but the landlord cannot claim missing rent via insurance.
When the risk is greater, premiums increase across the board.
That's a general statement, and typically true. However, In these cases the insurance companies are increasing premiums and reducing risk.
In OP's case.
Existing Insurance company are asking for a 37% increase AND reducing coverage for non payment of rent if he renews. Risk reduced, premiums increased.
If he lets it expire and buys a new policy, the insurance company removes coverage for non payment of rent. Risk reduced, premiums increased
Also just on a side note, if a tenant defaults on paying rent, they still owe that debt. If an insurance co pays out to the landlord, the insurance company will still recover from the tenant that debt.
I contact live-chat, and they said that you get a 30% discount of signing up online.
The 30% discount is for owner occupiers or renters and not landlords. landlord insurance has upto 15% discount
https://insurance.woolworths.com.au/landlords-insurance.html
They are now also saying
Due to unforeseen circumstances, Woolworths Insurance has made the difficult decision to suspend the sale of the optional benefit for ‘Rent Default and Legal Expenses’ to new customers and existing customers who do not already have this cover listed on their policy.
Along with all the other insurers you will pay considerably more for considerably less.
you had better not cancel then, if you want to keep your existing benefits
they said that you get a 30% discount of signing up online.
Same with home and contents insurance. I've found Woolworths the cheapest the last few years and I always have to call them up to cancel then purchase online for cheaper.
I have been having issues with Landlords insurance as well. Every year my premium went up 20% without anything changing or making any claims. After the 3rd consecutive year of this, I tried shopping around but couldn't find any decent prices so just I cancelled my insurance. When Covid hit, I tried to get insurance again for the potential rent default and then found that they all stated they would not pay out for renters being unable to pay due to COVID. What is the point of paying…
Wait until you get your home & contents renewal. They went up heaps too.
Same here. But strangely car insurance went down this year. RACQ said it was due to less cars on the road and doing less kilometres.
Gee that will be nice. That comes up in Sep. Let's see :-)
Yep. looks like I might just have to bite the bullet and pay the premium, as I will have some (50% of previous) rent default cover. Not ideal. But as many have highlighted, my only chance to have any cover at all at the moment.
So is the only way to get rent default and malicious damage by tenant covered by renewing your existing policy? Is no insurer taking new customers with these options?
Yes I believe so.
Also an update on my situation, I spoke to Woolworths CS and they sent me a $50 gift card which offset most of the price hike. Happy medium
Insurance premium goes up every year. Never experienced anything other than that.
Each year I re-sign up…. annoying but it's only a small inconvenience to save money. In your case 30% can be a big saving