Alternative to Insurance for 'As Is, Where Is' properties

Insurance is available for 'As Is, Where Is' properties, for instance BrokerWeb Risk Services or Mike Henry Insurance Brokers are able to place cover underwritten by Lloyds of London for insurable perils including fire, flood, storm damage, earthquake and hail.

If you are looking for a simpler and cheaper alternative to insurance for your AIWI property, we would be interested in understanding what you are looking for. Let us know your thoughts ​

Current thoughts on a possible alternative protection options:
  • Non-insurance structure but instead based on donation based crowdfunding with pre-funded donations (joining fee)
  • Protection against losses which result in the property being no longer habitable / safe to tenant i.e. does not cover partial losses
  • Joining fee of X weeks worth of rent^ + 10%, for a maximum lump sum payout equivalent to X years of rent (choice of  X being 1 - 3 in the first year, 1 - 7 in year two and 1 - 10 in year three)
  • Isolated losses are paid from the remaining balance of the joining fee (noting this may be less than X years worth of rent depending on the number of members*). 
  • In the event of widespread losses, the remaining balance of the joining fee is payed back to members in proportion to their joining fee.
    Following a claim, for members to remain protected, they must pay their joining fee again (i.e. top-up). If there are no losses, there is no need to pay a rejoining fee.
  • 10% service fee to independently verify losses, manage joining fees / pay banking costs, provide pay-outs, manage website etc
  • All protected addresses, addresses with have had losses are published on the website as is the remaining joining fee balance.

​^ alternatively if owner-occupied, then median market rent can be used instead (https://www.tenancy.govt.nz/rent-bond-and-bills/market-rent/)
* 1x required approx: 12 members paying 1 week each, or 6 members paying 2 weeks each etc

Good idea? bad idea? needs tweaking here? Please contact us ​ to let us know your thoughts.

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