topic Re: Insurance question. in Community Spirit

Insurance question.

flashie* — Thu, 30 Apr 2015 05:51:34 GMT

This is the scenario.

A person rents a property.

They have no contents insurance..........(landlord has the house insured)

They accidentally cause a fire which causes significant damage...........(that it was accidental is confirmed by fire investigation report)

Insurance company repairs house.

Tenant moves back in.

Now the insurance company is wanting the tenant to repay a considerable amount (in the 10's of 1000's) in recovery as it was their negligent behaviour which caused the fire.........(a pot was left on the stove)

Is it normal for the insurance company to do this..............or is just this insurance company?

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 06:24:26 GMT

Sad to say, it sounds about right to me. The insurance company has the right

to recoup monies spent from the person that caused the damage.

Isn't that the way all accidents are dealt with?

Getting legal advice would be my priority. Most lawyers have the first visit free

Re: Insurance question.

lloydslights — Thu, 30 Apr 2015 06:31:48 GMT

I don't know the answer.

However, if you live in your own house and had it insured and a fire was caused by the same sort of accident, does the insurance company chase you up for payment too?

DEB

Re: Insurance question.

lyndal1838 — Thu, 30 Apr 2015 06:36:24 GMT

@lloydslights wrote:
I don't know the answer.

However, if you live in your own house and had it insured and a fire was caused by the same sort of accident, does the insurance company chase you up for payment too?

DEB

That is why you have an Excess. If you are to blame you pay the Excess. If someone else is to blame then the insurance company recoups money from them.

Re: Insurance question.

lloydslights — Thu, 30 Apr 2015 06:39:50 GMT

Thanks for the reply, but is the Excess $10s of thousands?

DEB

Re: Insurance question.

j*oono — Thu, 30 Apr 2015 06:43:20 GMT

That's a bit of a disaster for them Flashie.

What position does this put any renter in? They can't insure the house themselves as it is already insured by the landlord.

I would say legal advice too.

Re: Insurance question.

debra9275 — Thu, 30 Apr 2015 06:52:07 GMT

Flashie, there is an Insurance cover called Landlords Insurance. do you have that one? And it does cover accidental damage (by tennents) as far as I know

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 06:56:09 GMT

Problem is......did they have Landlord's Insurance or just ordinary Building Insurance?

Landlord's Insurance should have covered it.

Re: Insurance question.

rabbitearbandicoot — Thu, 30 Apr 2015 06:56:13 GMT

did the insurance replace their contents?

The landlord would have insurance with an excess that he would have to pay. I would think he would then chase the tenants for a refund of the excess.

Re: Insurance question.

debra9275 — Thu, 30 Apr 2015 07:00:09 GMT

we were talked into taking it out by our RE agent stawks i can see now why it is an important thing to have, ..

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 07:05:54 GMT

All landlords should have it. I don't think ordinary insurance will cover you if you have

tenants.

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 07:19:11 GMT

Had a bit of a google (hehe) and Renter's insurance only covers

contents for fire and theft.

But how does a renter cover themselves for this scenario?

Re: Insurance question.

janeababe — Thu, 30 Apr 2015 07:23:26 GMT

Even though it was an accidental fire, it was still caused by negligence. The insurance company has the right to try and retrieve some or all of the costs of repair from the person or persons responsible for the accident (in this case, the tenants)

The insurance company will most likely take the tenants to court.

Be mindful, this issue will now increase your premiums.

.... Hope no-one was hurt.
xxj

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 07:25:18 GMT

Talking to myself here, but.....

If a tenant doesn't even have the option to take out insurance

to cover a scenario like this, doesn't that make it unfair in law for the

Insurance company to sue for the damages?

Re: Insurance question.

j*oono — Thu, 30 Apr 2015 07:25:50 GMT

It's all a bit of a rort isn't it. They take money from the landlord to insure the property and then they take money from the tenant to fix it.

Re: Insurance question.

janeababe — Thu, 30 Apr 2015 07:27:55 GMT

@j*oono wrote:
It's all a bit of a rort isn't it. They take money from the landlord to insure the property and then they take money from the tenant to fix it.

yep! All insurance is a rort!

cant win if you have it, cant win if you dont! *sigh*

Re: Insurance question.

flashie* — Thu, 30 Apr 2015 07:32:21 GMT

As the landlord we are all covered..........and the property is fixed.

I am trying to help the tenant................she had no contents insurance at all..............(which was her responsibilty)........she lost everything......and now this.

Re: Insurance question.

janeababe — Thu, 30 Apr 2015 07:36:41 GMT

@flashie* wrote:
As the landlord we are all covered..........and the property is fixed.

I am trying to help the tenant................she had no contents insurance at all..............(which was her responsibilty)........she lost everything......and now this.

I think it would be best for her to get legal advice.

Re: Insurance question.

imastawka — Thu, 30 Apr 2015 07:37:30 GMT

Sorry to hear it flashie, but as long as you and yours are fine.........

Hope it all works out ok

Re: Insurance question.

debra9275 — Thu, 30 Apr 2015 07:40:46 GMT

Flashie, if it was your insurance and it was covered, ( as accidental damage)it seems wrong that they expect the tenant to pay anything at all. Have you had a good read of your policy ?