Income Protection - for property renovators

Have any renovators in the forum, who buy-improve-sell property, managed to get Income Protection for what they're doing?

We've got a client who's after some but the normal insurer's wont insure income that's derived from buying/renovating/selling property.

Any thoughts?

Happy to be corrected if anyone knows otherwise, but I can't think of a single insurer that would consider this as income, hence the ineligibility.

Mark

Hi Property WA,

I can understand why the underwriters would get a bit funny about it as an individual (ie, not employed which is a main test for IP/TSC). How can they put a $$$ amount on a non-guaranteed profit/Income. Compared to going out and doing it for someone else were they can charge an hourly rate.

If your client can show a repeated history of success doing this can obviously be beneficial to your client.

First port of call, is ING on your Approved Product List? Check out the ING Living Expenses Cover. As it is IP for casual employees and home makers so the maximum monthly payment is $3,000. See http://www.ing.com.au/public/pdfs/L2332_OneCarePDS.pdf

Alternatively, have you tried Business Expense insurance and call them a Sole Trader? (Not sure if you can use BE on Sole Trader, this may solve your issue). Let us know how you go.

Thirdly, you could use a Home-maker occupation for TPD with Trauma to cover any major events which may occur. Not as straight forward as writing an IP policy but the next best if you can't.

If all else fails, ring up all the insurance BDMs you know We have approximately 10 or 12 we can use. Talk to them about the issue and then ask them if you can ring the underwriting dept directly (AIG are very good like this, whether or not they will insure your client is another question).

Cheers and good luck,

Dan

Hi Mark & ASXbroker,

Thanks for your replies.

ASXbroker -

Yep, my thoughts are the same and I see where UW is coming from. Unfortunately our client's only been at it 18mths 'officially' so we're limited with financial records.

ING is on our approved product list (I'll have a look at that product now) - thanks!

TPD & Trauma - love the suggestion as it's one we've already put in place.

As for the BDM's, yep tried a couple and may just try more. Unfortunately the ones that go the extra mile and are good at this type of thing aren't able to provide cover.

I'm going to try exhaust all options and am speaking to a guy who maybe able to help this arvo. I'll post what I find out for anyone else interested.

Hi Property WA,

Let me know how you go with ING, I am interested to see whether they suggest the Living Expenses option if the usual Income Protection isn't available for your client.

Cheers,

Dan

PS Before making an insurance decision speak to your FPA registered Financial Planner.