Westpac Landlord Insurance Review

There are 3 Westpac Landlord Insurance policies to choose from; building insurance, contents insurance and a combined building and contents insurance policy. As a landlord, you probably want either building insurance or a combined policy.

Further to this, you can choose your level of cover - Essential Care or Quality Care. Whichever will be best for your lifestyle.

Different types of landlord insurance available from Westpac

• Contents only insurance. This insurance provides cover for any loss to contents in your house during events like storm, flood, lightning, fire, earthquake, malicious act, riot and more. There are two levels of cover: Essential Care and Quality Care. Essential Care cover is a bit limited than Quality Care. Essential Care does not provide a cover for electrical motor burnout, accidental breakage of glass, loss of rent, contents in open air and has a limit of $3,000 for any damage to artworks or tvs, stereo, VCR, etc. Quality care on the other hand covers all the above and provides full cover for damage to tv, stereo, VCR,etc.
• Building only insurance. Some properties have minimal content which reduces the need for contents insurance. In this situation the landlord can take only building insurance which can reduce the cost of the premiums. There are two levels of cover: Essential Care and Quality Care. Both levels will cover any damage to the property by storm, flood, lightning, earthquake, explosion, malicious act, riot, civil commotion and more. Additional cover under Quality care include mortgage discharge, cover for landlord fittings and fixtures up to $20,000, loss of rent up to 10% of insured amount or 12 months of rent whichever is less.
• Building and Contents insurance. Landlords can also take dual cover of building and content insurance. It also has two levels of cover: Essential Care and Quality Care. They provide the cover mentioned above. This insurance is useful if the total value of building and contents are both substantial. All the limits, extras and cover details mentioned in the above two types will be applied in this insurance. There is an additional cost saving if building and contents insurance are combined in a single policy.

General Exclusions

The policy does not cover loss or damage caused by:

• Maintenance and building. Any defect in the design, structure, materials, etc. is not covered. Adequate maintenance of the building must be taken with all work completed as required by relevant authority.
• Wear and tear. General wear and tear of the building is not covered which includes rust, corrosion, mould, etc. Earth or soil movements including landslide, subsidence or erosion is not covered. (Cover for earthquake is provided).
• Power surge. Any damage due to power surge from supply authorities is not covered.
• Malicious, legal or illegal acts. Any damage by owner or someone acting with their consent is not covered.
• War, terrorism exclusions. The property is not covered against any damage during war or damage due to acts of terrorism. This includes damage due to chemical, biological or nuclear weapons.
• Common property. Damage to common property is not covered where the home is a strata, group or community title unit.

How much does Westpac Landlord insurance cost?

Westpac Landlord insurance premium depends on a host of factors. They include property' location, material used, security features installed, exposure of property to storm, flood, etc., level of cover and expected cost of claims. Westpac provides an online calculator where one can find the approximate cost of building and gives an estimate of the amount one should get insured for.

Customers can also get a rough estimate by adding the cost to rebuild the structure with the given size, design, features, material, etc. One should also add the cost of permanent fittings and fixtures like dishwasher, verandah, pools, carports, etc. It is possible to change the insurance sum if customers feel there is a need for extra cover. This change might be required when the cost of labour and materials changes, if there are changes to building codes and regulation or when there are additional fixtures and fittings.

There is a safety net which gives an extra insurance cover, over and above the sum insured for. This safety net helps a lot during damage caused by natural disasters like earthquake, storms, etc. During this time the labour and material cost get inflated due to higher demand. The safety net provides a cushion against such unforeseen circumstance.

Westpac Landlord insurance excess

Excess is a useful tool in the insurance industry which helps to keep the premium cost low. Excess is an amount which customers need to pay before the insurer pays the claim. The excess options are: $100, $250, $500, $1,000, $2,000 and $5,000. If a person only needs insurance for major damage to building involving bigger costs, a higher excess can be chosen. This will allow the premiums to be lower and if there is such damage, the insurer will pay a major part of the damage leaving only the excess amount to be paid by the customer. However if the insurance involves cover for smaller content item also a lower excess is suitable which would reduce any out-of-pocket expense during claims.

How to save on you Westpac Landlord insurance policy?

Customers can use the following tips to reduce their premium costs:

• Both cover. By insuring both building and contents by Westpac in a single policy the premium cost can be minimized.
• Higher excess. A higher excess during claims reduces the premium costs dramatically. The ideal excess amount should be chosen based on the type of cover.
• Level of cover. Not all properties require a higher level of cover. If suitable, customers can choose a lower level of cover to reduce their premium cost.
• No claim bonus. If the customers do not make any claim for 1 or more years they will get no claim bonus.
• Good security. Having good security system in the house helps to reduce the premium cost as it deters intruders and reduces insurance cost.

Who is eligible for a Westpac landlord insurance policy?

A Westpac landlord insurance policy is suitable for someone that owns a residential building that they rent out to a tenant. It's suitable for those who want to protect themselves against:

• loss or damage to their building caused by certain unexpected insured events, like a fire or theft.
• loss of rent as a result of their building being uninhabitable or inaccessible because of an insured event.
• legal liability resulting from their ownership of the building.

Making a claim

If any event occurs which would require a claim, the insured person is advised to first make sure the tenants and property are safe. If need be a call to police should be made. After this a call can be made to Westpac on 1300 369 989. This number is available 24 hours, 7 days a week.

The company will then ask for some time to inspect the loss or damage to the property. A proof of ownership, value of property and value of rectifying the damage need to be provided. The company will then assess the claim and appoint an assessor or investigator and provide an estimate for the time required to make the decision.

Are there additional benefits?

There are a number of additional benefits with Westpac Landlord insurance. They are: payment for professional fees, emergency repairs & protection and fire brigade charges. Some benefits are available to Quality Care cover, which are payments for loss of rent, mortgage discharge, landlord fixtures and rainwater tanks.

Both Essential Care and Quality Care cover are provided automatic indexation benefit which helps to keep the insured sum in line with the inflation.

Frequently asked questions

• Is it worth getting Landlord Insurance?

  For most landlords, landlord insurance is very worthwhile. It's like a safety net for your rental property. It can cover things like damage from tenants, lost rent, and even legal expenses. Think of it as peace of mind for when the unexpected happens.

• Does Westpac have home insurance?

  Yep, Westpac offers a range of home insurance options to protect your home and belongings from things like fire, theft, and natural disasters.

• What is the difference between home insurance and Landlord Insurance?

  Home insurance is for homeowners who live in their own homes. Landlord insurance, on the other hand, is specifically designed for rental properties. It covers things that regular home insurance might not, like tenant damage and lost rent.

• Is Westpac a good insurance company?

  Westpac is a major bank in Australia with a good reputation for insurance. But it's always a good idea to shop around and compare different policies to find the best fit for your needs.

Written by

Gary Ross Hunter

Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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