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Property Managers: Check Your Insurance Authority

Most managing agency agreements include a ‘tick the box’ question asking the property owner if they would like the property manager to place landlord insurance on their behalf.

However, if the property owner ticks this box granting the property manager permission to place cover, this does not necessarily give the property manager authority to take out insurance on behalf of the property owner.

Only property managers who are set up as distributors can deal in insurance and place cover on behalf of a property owner.

At Terri Scheer we are often approached by property managers whose property owner has ticked this box on the managing agent agreement – but in many cases the property manager is not authorised to take out insurance on the property owner’s behalf as they haven’t been appointed as a distributor.

I am an authorised distributor. What can I do?

A distributor is able to deal in insurance on behalf of their property owner. This enables the distributor to speak with the insurer, place cover, pay invoices and cancel a policy. A Property Manager can also lodge claims on behalf of the property owner.

To become a distributor with Terri Scheer it is a requirement that an authorised representative of the business signs an appointment letter on behalf of the business. The business then sub-appoints its employees, including new employees joining the business after the initial appointment. All authorised employees must complete an annual training module before dealing in insurance and adhere to the obligations set out in Terri Scheer’s Distributor Operations Manual.

I am not an authorised distributor. What can I do?

For property managers who are not distributors they can still inform their property owner of the existence of landlord insurance in the form of a brochure. The property owner must complete and sign the application form and send it directly to us by email. Alternatively, they can apply online through the Terri Scheer website. We have recently made the application form editable – the property owner can type and digitally sign the form, simplifying the process. If the property owner authorises it, property managers are able to pay invoices and lodge claims on the property owner’s behalf.

Be careful not to give advice

Regardless of whether you’re a distributor or a referrer, property managers are not permitted to recommend or influence property owners in their decisions to buy or dispose of financial products, including landlord insurance.

By keeping your conversations factual will assist in not breaching this obligation.

Our team at Terri Scheer is here to support property managers, so if you have any questions about your level of authority or would like to become a distributor please do give us a call.

For further information call 1800 804 016.

Editor’s note

About Terri Scheer Insurance

Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 (Terri Scheer) provides insurance cover for landlords, helping to protect them against the risks associated with owning a rental property. These include malicious damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of AAI Limited ABN 48 005 297 807 AFSL 230859 trading as ‘Vero Insurance’, the insurer which issues the insurance cover. Terri Scheer has not taken into account the reader’s objectives, financial situation or needs. If you are interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure Statement should be considered first. It can be viewed online at www.terrischeer.com.au or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states, territories and capital cities.


The information contained in this article is intended to be of a general nature only. Terri Scheer does not accept any legal responsibility for any loss incurred as a result of reliance upon it.

Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy.

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