Ausure brokerage launches landlord insurance

An Ausure media release said the product’s automated landlord insurance quoting system allows ALI’s brokers to “streamline their workflow” freeing up time to focus more on customer service.

A prototype for other insurance lines?

Behne expects his firm and Ausure to roll out the system and back-end software to other broker insurance lines in the future.

However, for the time being, he said, ALI’s brokers and property managers will be the beneficiaries.

“We’ve signed large distribution agreements with a few integrated real estate tech companies,” said Behne. “It will continue to be like that just because we want to work with the agents instead of just offering a blanket solution where you can just get a quote because it’s important that the owners actually understand what they’re covered for rather than [us] just providing a product and not doing any work essentially!” he said with a laugh.

Behne said the technology he’s built with Ausure allows [insurance] quotes to happen “in seconds” and the property managers can get multiple quotes. He also said his brokers can “work in” with a property manager’s workflow, “rather than just traditional email.”

One of his focus areas, he said, is reducing preventable claims to help keep policy pricing competitive.

“Also, because we’re a broker, we’re able to compare the products and we’re able to give the customer service to both the owner and the property manager to educate them on what the products cover,” he said.

Steve Sloan, Ausure’s general manager of communications and digital, described the offering as a new distribution channel specifically for landlords with property management companies “with good management systems and strong data.”

Levelling the playing field with insurers

Until now, Behne said, insurance brokers have traditionally had access to this insurance space but they were at a disadvantage to the insurance companies.

“We saw an opportunity in this landlord space where the biggest competitors are now agents of the insurers and there’s not a lot of competition, really,” said Behne.

One big problem for brokers, he said, was processing transactions and competing on price.

“The other guys [insurance companies] can do quotes within seconds,” he said. “This makes it a lot easier for them to compete at a $300 to $400 price point.”

The ALI offering hopes to change that. The release said the AR will also offer what it’s calling a Claims Concierge Service in an effort to reduce wait times on claims for property managers.

“Digital projects like Australian landlord insurance are important for traditional businesses because they provide opportunities to reach and engage with customers in new and effective ways,” said Sloan.

Behne said the landlord insurance sector is “ripe for disruption.”

“Utilising multiple insurers means we are able to work within each insurer’s risk appetite, without having to reduce coverage or exclude properties from our offering,” he said.

“We’ve found that underwriting the property manager is almost as important as underwriting the property itself,” said Behne. “A proactive property manager will always have fewer claims than an agent who does not carry out routines or follow up rent arrears.”

Landlord Insurance 101

Landlord insurance is used to provide coverage for all kinds of investment properties – including houses, apartments, flats, and townhouses. In Australia, investors are not legally required to buy it.  Some reports suggest about half of self-managing landlords take it out.

Some standard covers can include rental loss, building damage, damage to fixtures, public liability and legal expenses. Recent news and industry reports suggest that loss of rent accounts about half of all claims.

Landlord policies operate much like a standard homeowners’ insurance but with a few key differences. Landlord insurance applies to properties rented out to tenants, not to owner-occupied residences. It also comes with higher liability limits as rental property owners face more risks than those who occupy their own homes. Landlord insurance also provides coverage for lost income, which homeowners’ plans lack.

Are you a broker who offers landlord insurance? What are your challenges? Please tell us below.