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?

[siggie-reported-by-alarmists]

A solicitor might argue that the kitchen design made it unsafe..... or no smoke /broken alarm in the kitchen. (Against the law in rentals)

The insurance company doesn't really have much hope in collecting the full amount.

The tenant might offer a lesser amount to settle..... if they feel the need to pay anything at all.

[imastawka]

Tenant's responmsibility to change the battery in smoke alarm.

If there was no smoke alarm fitted, the Insurance Company wouldn't

have paid out in a rental.

And I'm sure flashie would have had one fitted

[flashie*]

The tenant has sought legal advise.................and it appears the insurance company is quite within it's rights to claim the money back from her.............and as she had no contents insurance she had no liability cover which is why she will have to pay  the insurance company.

This sure has been a lesson for me.....................I had no idea that this could happen...........I also found out that it is the contents part of your insurance which covers you for an accommodation stay in the case of a house fire...........not you house/building insurance...............also not all contents insurances offer this.

So........................please check you insurances everyone.

[siggie-reported-by-alarmists]

The insurance company can ask her for it......... not much they can do if she says no..... or declares bankruptcy.... just saying.

(A solicitor telling her she has to pay, is probably not a good one.)

[imastawka]

Not everyone is willing to declare bankruptcy willy-nilly.

It can have devastating effects on some aspects of your life for 5 years

Mind you.....It may be necessary here though

[j*oono]

I think it will be necessary too and the Insurance company most likely knows this.  A tenant in a co-operative without two cents to rub together and so didn't have even contents insurance.

The insurance company is heartless and is basically robbing from Peter to pay Paul.  They were paid to insure the property.  

[siggie-reported-by-alarmists]

To Ima....

Not  everyone burns down their landlords house either. Or not have their own insurance policies.  

If they lost all their assets in the fire, do not own real estate, and a have an insurance company chasing them for tens of thousands of

dollars......... it would be looking like an intelligent decision.   This would be a decision that should not be taken lightly.... by anyone.  

However, it could be a way for people who are in a particularly  ugly position to clean a slate and start from scratch.  Build their own

lives, rather than line the pockets of an insurance company. The insurance company would probably settle for a lot less than the full

mount too, rather than take it through a court. If the insurance company aren't prepared to do that..... they would get nothing if

bankruptcy was declared....they would prefer something rather than nothing.

[imastawka]

siggie - downside is, being a bankrupt, no estate agent will give

them anywhere to live.   Too risky a prospect.

If flashie let them back in as tenants, then they better take out insurance

this time.

Lesson learned I'd say,  for everyone

[siggie-reported-by-alarmists]

As I understand it, Flashie has already let them back in.......so that doesn't seem to be a problem. Could be wrong though.

They must have been an outstanding tenant prior to this to be allowed back...... I'm not sure I could be so forgiving.

[imastawka]

I hear ya siggie.   Yep Flashie said they moved back in.    Don't think I would

forgive it either.

But let's face it Flashie is nicer than we are