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]

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

tenants.

[imastawka]

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?

[janeababe]

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

[imastawka]

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?

[j*oono]

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.

[janeababe]

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@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.

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yep!   All insurance is a rort! 

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

[flashie*]

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.

[janeababe]

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@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.

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

[imastawka]

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

Hope it all works out ok

[debra9275]

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 ?