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Can I claim ruined IP carpet through insurance?

Discussion in 'Repairs & Maintenance' started by proper_noobie, 7th Mar, 2016.

  1. proper_noobie

    proper_noobie Well-Known Member

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    I had a tenant who stayed around 2 years move out a few weeks ago and left most of the house in a reasonable condition with the exception of a few items like the lawn, heater, few broken things, missing flyscrens etc, but,

    The 5 year old carpets stink and were full of mites. They had pets and once they moved out, the carpets were steam cleaned which freshened up for a few days, then stank again. They were steam cleaned again but the putrid urine smell is back. Used a few cans of no vac pet smell remover foam from Bunnings, but they only slightly masked the odor. Found the bug bomb I used didn't kill the mites so I bought half a dozen of them which seems to have worked.

    I think I'll have to replace the carpets but am concerned whether putting it through insurance will cause issues for my other policies, or even whether or not insurance will accept this as a claim. All of my policies are through EBM except this one.

    Can anyone shed some light if this could cause my other policies to go up, or if there could be issues claiming for this type of event? Would the costs associated with the cleaning come from the bond? What about the insurance excess?

    Thanks
     
  2. A Jeremy

    A Jeremy Active Member

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    At one point I asked my insurer if making a claim causes my premiums to rise and they wouldn't exactly give me a straight answer. They always say that premiums are a reflection of the insurer's perceived risk so I guess if someone makes a claim which causes their algorithm (a dartboard) to reflect an increase in the cost of claims then they can and will, increase your premium. I generally only make claims over around $5000 but I'm pretty bad when it comes to monitoring costs that I can't change - I really like my insurer. Also, I leave shopping around to my business partner.

    I recently have a tenant vacate that used an office chair with rollers on the carpet in one room and we took the cost to replace the carpet in that room out of their bond. I'm not sure if the tenant's bond will cover the cost to replace the carpet in house but it could be a start.


    Jeremy
     
  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    Yes you can claim on insurance
     
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  4. A Jeremy

    A Jeremy Active Member

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    Oh yeah, I meant to add just ask your insurer if you're not sure what you can and can't claim.


    Jeremy
     
  5. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Hi Proper,
    The urine has seeped through the carpet and into the under felt. You need to remove/dispose of the under felt, (and the carpet) and hope that the floorboards aren't saturated as well... as soon as possible. This is why the smell comes back after cleaning.
    Document the removal, keep samples of the damaged carpet and under felt, to show your insurance company ( they love seeing damage!)
    My landlord insurance doesn't pay on Pet damage.. I really hope yours does!
    I hope this helps
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

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    If the replacement value exceeds the bond then you can claim the whole amount.

    First allocate money to fix the small items and then if the insurance company allows pay the excess from the bond.
    The remaining money would be allocated to the new carpet.

    The insurance company will only pay a percentage of the carpets value per year from original invoice, so if it doesn't cover everything you may need to pay the rest.
     
  7. MRTLR1000

    MRTLR1000 Active Member

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    No you cannot claim your carpet on your insurance as most likely , your policy will not cover damage by animals or unhygienic living by the tenant. if that is the only thing wrong with it, then the bond will be deducted, and then the excess.answering if premiums will go up is most likely, but minimal and cannot be advised how much as its based on a yearly projection. Carpets will only be able to be claimed most likely if its been damaged by a malicious act. Dont have carpets is what Id say. if you mention the policy who you are with, i can tell you straight up...but there are not many policies that cover damages caused by vermin or pets.
     
  8. Azazel

    Azazel Well-Known Member

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    You should pursue the tenants for the costs in the 1st instance - in my opinion.
     
  9. neK

    neK Well-Known Member

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    This is why I try to avoid carpet in IPs. At least with Laminet it can be wiped up quickly
     
  10. Hosko

    Hosko Active Member

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    Xenia,
    I'd be interested in your thoughts under what pretence would they be claiming if their insurer didn't cover damage by pets?
     
  11. Xenia

    Xenia Adelaide Property Manager Business Member

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    Hi Hosko

    I need to qualify here and say this scenario is easy to claim through a specialist landlord insurer. Most cover pet damage.

    Some of the bank insurers and non specialist companies would probably reject the claim.
     
  12. Nick Valsamis

    Nick Valsamis Well-Known Member

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    As above, each insurer is different.

    Some charge an excess for rent defaults, some don't.
    Some allow you to use bond money for the excess, some don't.
    Some cover pet damage, some don't.

    It is best to always check the PDS to see what is covered and what is not covered.
     
  13. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Insurers will question why you didnt seek to recover tenant damage and loss through the bond. If the carpet is in poor state due to age, wear and tear etc or just aged and unclean they may refuse arguing it wasnt damaged / loss etc but unclean and that the age of the carpet is of no value. A defined event such as a fire or tearing would be different to being unclean / worn and odour.

    Insurers dont provide compensation they insure loss / destruction based on defined events.