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?

[imastawka]

Gleee, did you miss this bit in the OP?

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)

[flashie*]

Glee.............I am not 100% sure but I think she was told if she had of had contents insurance she would have been covered by some sort of liability insurance that covered her "negligence" in leaving the pot accidentally.

[gleee58]

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@imastawka wrote:

Gleee, did you miss this bit in the OP?

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)

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Oops, yes.  We had a house fire once in a rented house.  Thankfully the insurance company did not chase us for the damages.  I still don't see how her contents insurance would cover the property damages because it only covers specific contents.

[gleee58]

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@flashie* wrote:

Glee.............I am not 100% sure but I think she was told if she had of had contents insurance she would have been covered by some sort of liability insurance that covered her "negligence" in leaving the pot accidentally.

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Wow, that's tough.   Thanks for this thread.  it's a nice prompt to check out the insurance cover  😄

There is an add on that covers tenant damage. I think we must have the extra as one person smashed the new gates and they covered it without chasing the tenant.

[cherry*135]

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@flashie* wrote:

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?

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Yes, that is the way it is.

Tenant needs contents insurance, which includes public liablity cover for any damage they  do to others property.

If they cause a fire and a, for example, $300 000 house burns down and is totally destroyed, they are liable.

[lyndal1838]

My Contents Policy covers accidental damage which would cover the scenario being discussed here.

The Public Liability section is on my Home Policy....both with the same company.

[cherry*135]

Contents insurance policy

We cover the legal liablity for your or your family for -

.............................

......in addition, if you are a tenant or own your own home under a strata or similar scheme, we cover legal liablity for:

.> death or bodily injury to someone else, or

> loss or damage to someone else's property

in an incident that takes place in your home or at the site and for  which you or your family are repsonsible as an owner or occupier of your home or site.

Family member was a Loss Adjuster for many years.

Accidental damage - is , for example, if you bump into your own TV and it falls to the ground and is damaged.

Optional extra on a most of policies. I haven't taken out that option.

If a tenant, and had insurance it would only be contents insurance and accidental damage applies to their contents they own.

[kilroy_is_here]

Am 3 is correct, public liability through contents insurance

[joz*garage]

what does an extra cover landlord's insurance policy cover for then?

[joz*garage]

https://www.youtube.com/watch?v=Z0YIJQ1jgEI