Fire insurance claim

Discussion in 'Legal Issues' started by Kim23, 4th Feb, 2020.

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  1. Kim23

    Kim23 New Member

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    Currently going through with an insurance claim for a fire started by a christmas decoration owned by the tenants. In initial stages I agreed with property manager to start the cleaning process as long as it would be covered by my insurance. As a result the cleaners steam cleaned rugs and lounges to the value of $550 which should be claimed on contents insurance which the tenants do not have. The property manager has taken the money from our rent and paid the invoices, so I am out of pocket for this plus the excess on my insurance. The tenants want to move out for 2 weeks while the property is being repainted as she is 8 months pregnant and want me to waive the 2 weeks rent. Am I within my rights:
    asking for the $550
    asking for the $600 excess​
    Do I have to let them off with the 2 weeks rent?
    Obviously I will come to the party with part of it but I am amazed that they think It is unfair that they are out of pocket because there was a fire which was not caused by a fault with my property. Can anyone advise as I have been on the Consumer Affairs website and can not find anything nor can I get through to them.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    You have the right to ask for anything, especially if you have suffered a loss because of them. but whether they accept this or not is a different matter. It might end up in the tribunal so try to find if there are other similar cases you can read about
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Ouch.... that shouldn't have happened at your expense.....

    The Y-man
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Are you responsible for the tenant's predicament?

    What does the lease say about reinstatement of the property and your right to terminate or suspend rent during restoratory works? (no different to those affected by the bushfires).
     
  5. thatbum

    thatbum Well-Known Member

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    Are you claiming on your own insurance? You need to be careful what you ask for from the tenants because it might invalidate your insurance claim.
     
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  6. bunkai

    bunkai Well-Known Member

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    Given you state that these costs should be covered by the tenant, I assume these rugs and lounges are owned by the tenant? If so, why are you cleaning them?
     
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  7. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Nice gesture but perhaps not wise. They didnt have insurance so need to learn what the word consequence means.
    It may be wise for your solicitor to address lease issues etc and make a claim for your loss. Your insurer may cover this cost for legals and may even refer you to a soliictor (??) If you have LL insurance its a potential benefit incl lost rent.
     
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  8. The Y-man

    The Y-man Moderator Staff Member

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    Sounds like the PM had a bit to do with this going by the OP....

    The Y-man
     
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  9. TMNT

    TMNT Well-Known Member

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    So insurance can outright dismiss your claim just because you got them to pay for a thing or two??

    Seems ridiculous
     
  10. thatbum

    thatbum Well-Known Member

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    Its more about voiding your claim on insurance because you've interfered with the insurer's ability to claim the money back from the liable party.

    Remember part of making an claim on your own insurance is that you're selling/transferring your legal rights to your insurer.
     
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  11. TMNT

    TMNT Well-Known Member

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    Good point, and its not just about $x paid, its about making it harder to chase the liable parties if some $$ has already been exchanged
     
  12. Stoffo

    Stoffo Well-Known Member

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    Did you have the above in writting ?
    If so I would be emailing the agent asking "WHY" they have reimbursed the tenant without verifying that the insurance was covering first !
    Then request the reversal of the payment (or pay it themselves due to their error).

    As for the two weeks, I wouldn't want to be out of pocket due to a tenants actions (even if it wasn't a deliberate act by them), will your landlord insurance not cover the vacancy?
    I'd be checking with your insurer first
     
  13. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Yes. The policy has rules. Common ones:
    - Costs must be approved prior to any work occurring
    - Assessor hasnt given approval prior to work commencing (a emergency clause may be defined in the policy)
    - Unlicensed or uninsured trades or tradies who arent allowed to perform certain work (eg electricals by a handyman)
    - Claims may only be made for your own possessions
    - New for old v depreciated value

    - Excess per "claim" tricks. eg A burst pipe caused by you accidentially drilling into a wall may be two claims not one ! eg The drill hole is a accidental damage claim and the water damage is a different claim. Most insurers have this one.
     
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