Insurance - I can't wait for multiple quotes before starting repairs

Well, after finally managing to move a set of tenants on, and conducting the exit interview, it has become apparent just how badly they were looking after the property. A lot of damage has been done, and a lot of different trades will need to be called in to fix the damage, or replace items. All up, there's at least $12-$15K worth of damage that is certainly not 'fair wear and tear' (I mean, who needs to iron the carpet, and in all 4 bedrooms, no less). The PM didn't pick up a lot of the damage done during the scheduled visits - before inspections, it appears the tenants were moving furniture items,such as beds, lounges, shelves etc, to hide a lot of the damage. It wasn't until they'd moved out that the problems became apparent. Clearly, the bond wont cover it.

In order to get the place fixed and back onto the market ASAP, my property manager has managed to locate a 'one stop shop' (building/trades project company) that will deal with all the repairs and tradies required, specifically with a focus on rental properties (which is different to being an owner occupier). I'm happy with the quote, and have given him the go ahead, so that work can start pretty much immediately.

Now I'm being told that the insurance company needs to have 2 quotes for everything that needs doing! As we (both the PM and myself) are not aware of any other business that offers this kind of coordinated service, it would mean having to separately call in quotes from a plasterer, painter, electrician, glazier, carpet layer, carpenter, and cleaners - then organising to get the actual work done! The PM can't do that - there's no way she can do multiple visits to the property for quotes, then again for the work to be done, and get keys to people etc - that's just crazy. Plus, the property would end up being off the rental market for months while trying to get everything finished.

Anyone faced this before? Any suggestions for moving forward?

 

Their policy requirement so their rules unfortunately. I'm sure there are other Reno companies around, get one of them in to quote. If they're more owner occupied focused they'll likely be more expensive but you'll have your 2nd quote for the insurance company and can move on, no reason to fight it and no reason it will add more than 2 weeks max instead of months imo

 

Which insurer please?

 

Is this under Landlord Insurance?
Would loss of rent during repairs be covered?
Marg

 

EBM

 

Unfortunately I didn't know about the '2 quote' requirement before getting the first one to start. Can't really get another company in there to do a quote now....

 

Why not?

EBM is a good company to be with, IMO.
We were compensated for time during which repairs had to be made and for the time it took to become able to be rented again.

Depends on what you are covered for.

 

Can you do quote for items that have not been completed?

 

I don't normally do multiple quotes with EBM, I tell them its all fixed (past tense) because we wanted to mitigate the owners vacancy time (which EBM covers as well). They're always the best insurer to deal with from a PM perspective.

 

That's why I chose EBM - they appear to have gotten such great reviews on PC.

I'll see what happens next. Need to wait for the PM to get some docs sorted. I'm hoping to get the PM to be able to sort it out with EBM (the PM is very good - I'm very happy with her).

 

What state are you in? There are actually a fair few builders who specialise in insurance work, be it for smaller malicious damage type work or larger structural issues, eg this one in Sydney. There are a fair few in each state, personally I'd consider this a black.mark in your PMs booK as they should not only know this but should be the one dealing with this 2 quote issue
http://www.cjduncan.com.au

Btw if time is an issue I'd personally be more proactive or get your PM to be more proactive vs waiting to see what happens next.

Good luck either way, pretty irritating when this happens

 

I'm being as proactive as I can be - I can't move forward without some more documents and photos. They are on their way.

 

Sorry was more of a comment re your PM, as Dave above indicated this is normally the headache the PM should be dealing with, you're paying a PM and you are paying for insurance, youve taken all the steps to minimise your risk and potential headache and now those 2 businesses you pay need to do the work they are paid for

 

It really should not be an issue for the PM to get other trades access.

Ask them again, then do what you need to do, PM should also be looking after the insurance claim too ?

 

PM has been fantastic up to this point, and is continuing to be very supportive and helpful. I don't think her role description extends to spending hours on end ferrying tradies through the property to get quotes. From her office to the IP is an hour's drive (each way). To have to do this for multiple tradies, while still looking after many other landlords and tenants, is not reasonable.

She has been providing details to the insurer as quickly as she can. As most of us know, many PMs have a lot of properties on their books. Both I (and she) 'inherited' these tenants from a previous owner and PM agency, so she's only been looking after this property for less than 12 months (and is now having to try and make sense of the poor paperwork etc kept by the previous PM - that's why I changed PM; the previous ones were useless).

 

If repairs are essential I have always found the insuere mayhold approval but never a long time. Failing to get approval will lead to unapproved costs but patience yields rewards...I have sometime found they will mitigate loss and help go get it done faster and cheaper. The PM isnt a factor IMO. Insurers deal with landlords / tenants

 

You have to get two quotes? Does the insurer not have their own assessors?

 

I'm a bit shocked EBM is demanding two quotes for everything, @D.T.'s experience mirrors mine.

Unfortunately this really is a job for the PM and they should be able to get it done. She can put together detailed quote requests and leave a lockbox at the property for the trades to come through.

 

On Friday afternoon, the PM put together the requested docs for the insurer (the exit inspection, with accompanying photos, was 107 pages!). She then sent through the last 2 scheduled inspection reports (which show, in many places/cases where the tenants had placed furniture so that damage wasn't visible).

She also wrote a letter to EBM indicating that, in the effort to expedite the repairs and get new tenants in ASAP (thereby, saving on lost rent), it would be much less time consuming to have one company overseeing and implementing all the required work).

Now, I'll just have to wait to hear back from EBM. In the meantime, we are pushing ahead with the work. I know there was the suggestion to 'sit and wait' until the quotes are done etc, but a delay in repairs, and getting it back onto the market, is likely to have a longer term impact. If the repairs can be finished and it's back on the market in the next 3-4 weeks, there's a better chance of getting it rented, than pushing it out another couple of months (which, by the time the next lot of individual quotes are done, and each trade comes in separately to do their thing, would be likely). It wouldn't be back on the market until closer to Christmas - we all know that usually isn't the best time for a rental to be vacant.

 

Wouldn't EBM pay for the rental loss if it takes longer to fix?

Aren't you now risking EBM not paying your claim because you have failed to adhere to their requests?