Insurance question.

[flashie*]

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?

[debra9275]

I didn't even know there was a " renter's insurance" stawks and I bet many renter's wouldn't even have it

I reckon Flashie should tell the insurance company she's going to put in a complaint to the ombudsman or something. It just doesn't seem fair

[imastawka]

I think the tenant needs to do all the work - legal enquiries etc

Flashie wouldn't want to get the Insurance Company off-side methinks

[sandypas]

We have a friend in Nowra who has had 2 fires from oil catching fire on the stove because she forgot to turn it off after cooking chips.  She had extensive repairs done and only had to pay the excess both times.  They were about 3 years apart - the last about 6 month ago.

[gleee58]

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@imastawka wrote:

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?

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The tenant can take out contents insurance of what ever level is agreed upon and the owner takes out rental insurance to cover the rental property, not including the tenant's contents.   

[kilroy_is_here]

Yes it is standard practice for any insurance company to seek recompense from the party found to be at fault , normally the tenant would have insurance and the landlords insurance company would seek the money from them and the tenant would pay the excess. If the tenant does not have insurance then they will be personally liable for the cost not only of the insurance company but also for any excess that the landlord has had to pay

[imastawka]

kilroy, what insurance can a tenant get for this scenario?  

The only policy available for tenants is contents insurance.

That doesn't cover accidental damage to the house they rent.

So what  policy can a tenant get that would cover the landlord's property?

The house is already covered by the landlord.  There is nothing else as far as

I can see.

[gleee58]

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@kilroy_is_here wrote:
Yes it is standard practice for any insurance company to seek recompense from the party found to be at fault , normally the tenant would have insurance and the landlords insurance company would seek the money from them and the tenant would pay the excess. If the tenant does not have insurance then they will be personally liable for the cost not only of the insurance company but also for any excess that the landlord has had to pay

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Not around here they don't. That is what landlord insurance covers.  The tenant can't insure the building because they don't own it, they can only insure the contents.

[flashie*]

Apparently it is the lack of contents insurance by the tenant that has left her in this position.

Thanks for everyones in put.

[gleee58]

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@flashie* wrote:

Apparently it is the lack of contents insurance by the tenant that has left her in this position.

Thanks for everyones in put.

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Why? Was it one of her contents that caused the fire?

[imastawka]

Sorry flashie, but it was her stupidity for leaving a pot on the stove

that put her in this position.

It's nice you want to help her, but you can't be the good guy this time.