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]

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

[lloydslights]

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

[lyndal1838]

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@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

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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.

[lloydslights]

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

DEB

[j*oono]

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.

[debra9275]

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

[imastawka]

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

Landlord's Insurance should have covered it.

[rabbitearbandicoot]

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.

[debra9275]

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