QLD Building insurance void

Discussion in 'Property Management' started by mun5, 10th Jun, 2021.

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  1. mun5

    mun5 Well-Known Member

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    Hi all,

    I have a question about space usage and building insurance. Suppose the tenant uses the garage as a gym, which effectively transforms the purpose of the garage from a non-habitable room to a habitable one without council approval. If something happens and an insurance claim needs to be lodged, will it be voided due to the fact that the garage would have been illegally used as a gym (without council approval)? AFAIK a lot of tenants are doing exactly as described.

    Thanks
     
    mun5, 10th Jun, 2021
    #1
  2. wylie

    wylie Moderator Staff Member

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    Garage wouldn't be classed as a habitable room, would it? I can't see a problem.
     
    wylie, 10th Jun, 2021
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  3. mun5

    mun5 Well-Known Member

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    No it wouldn't, but what if the tenants use the garage as a habitable room (e.g., a gym) and injures themselves or causes the house to set on fire or other insurable events? Would that be classified as an event caused by illegal activity, and thus any claim would be voided?
     
    Last edited: 11th Jun, 2021
    mun5, 11th Jun, 2021
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  4. wylie

    wylie Moderator Staff Member

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    Why not just call your insurer and ask them?

    Googled and found top among the top hits -

    Habitable Room Requirements

    I have a weight bench in our garage. I use it for ten minutes at a time. Extract from that site (which looks like home gym doesn't need to be in a habitable room, though not specifically mentioned) -

    Image 11-6-21 at 8.50 am.jpg
     
    wylie, 11th Jun, 2021
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  5. boganfromlogan

    boganfromlogan Well-Known Member

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    I had a fire in the kitchen when an interloper was sleeping in garage. The insurancevwas paid
     
    boganfromlogan, 11th Jun, 2021
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  6. mun5

    mun5 Well-Known Member

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    But if the interloper was sleeping in the kitchen and caused the fire, I'm not sure if it'd still be paid.
     
    mun5, 11th Jun, 2021
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Is there a clause that says "we dont insure fires when...someone not named on a lease is sleeping overnight and a fire occurs in a unattended kitchen ?" I have never seen that. Read the policy for exclusions. There arent that many.

    If a home was used by the owner as a dormitory illegal boarding house and contained illegal mods and electrical wiring that the Fire Brigade suspect in the cause of a fire then its possible they may have reason to deny a claim where the increased electrical risk and mods wasnt disclosed to the insurer. If a ember from a bushfire caused the fire they would not deny. They may not pay for illegal mod losses of course.

    USE of a property illegally by the insured and an occupant are different issues. Insurer may revert to a agent and inspection reports if they wanted. But something bigger than an accidental fire is needed. Deliberately lit fiires by a occupant OR GUEST can be uninsured. Evidence of that would be neeed eg a statement to Police by a occupant who saw the BF of a tenant ignite fuel and run.
     
    Paul@PAS, 11th Jun, 2021
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