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

I imagine that insurance would cover lost rent until the place is fixed and rentable again - if we can get it to that state before mid-October, I'd be very happy, as I think it more likely to rent again in a short space of time. My fear is that if repairs are delayed and drag on, then it's not rentable again until mid-to-late November, but then nobody rents it again until late January (but the insurance would only cover the lost rent until November, because that's when the repairs were finished).

I don't want it sitting empty over the Christmas break - especially with a lot of aimless kids roaming the streets over the school holidays. An empty house may become a temptation to relieve the boredom.........

Geez, I hope not. That's my biggest fear right now

 

I would have thought that the rental loss compensation might continue until it is actually rented again?

My quick scan of the EBM PDS online made me think that rent could be covered for up to 52 weeks? Could have misunderstood though...

Did EBM say something different?

 

I'm not sure where we are at, at the moment. It's early days. I haven't heard anything yet, except that their claim paperwork wants me to submit two quotes. I'll wait until the person handling the case goes through everything we (myself and PM) have submitted and see where I stand.

 

You are required to abide by the terms and conditions of your policy. If you don't, you risk having your claim rejected.
Marg

 

I know - that's why there's a bit of a 'wait and see' at the moment. Some people have already indicated that they put in their claim after things were fixed, and only had the invoice (not two different quotes), and their claims were paid. That's why the whole thing is a bit 'iffy'.....

 

Unfortunately it’s not always one size fits all with claims, but in general the intent of two quotes is to ensure a provider is not overcharging, which has the effect of paying out more than necessary, increasing loss ratios and in the long term can mean increased premiums for all. Something no one wants.

But there are sometimes exceptions to the rule and we completely understand that and try to work with the claimant for the best outcome. In fact we will often accept just one quote providing it seems reasonable for the work being done.

It is important to reduce losses by getting work completed as soon as possible, what we would generally recommend is a quick phone call to our claims department to advise the situation and they will advise the best way of going about it. Remember it’s in our interest to get the property ready and re-tenanted as soon as possible too.

One of the most important things is to clearly detail the losses, which it sounds like your property manager is doing. We do genuinely have fair outcomes as our goal, but we need to ensure claims are fair, otherwise all the honest policyholders (which are no doubt the majority) risk being penalised with higher than necessary premiums.

It sounds like things are progressing, if you do have problems please feel free to drop me a message and I will check into it.

 

Update - after a bit of to-ing and fro-ing over the past couple of days, EBM has sorted it all out for me, and the claim should even be paid directly to me within the next day or so. The communication and requests were very supportive, and it was clear that the claims officer was trying to do what she could, in order to reach a fast, and very fair, resolution.

They cancelled the requirement for additional quote work, and allowed the photos included in the PM reports and exit inspection to be used as enough evidence of the damage that was done.

Overall, I'm very happy with the outcome. Now, I just need to get the repair work started (it was delayed due to the change in requirements), and get new tenants in ASAP (I hope).

A huge thanks to the PC members who helped keep me calm, and used their knowledge and generous nature to help me get this sorted.

KayTea

 

I followed all their rules and EBM still rejected my claim

 

Was it a covered event ?

 

Unfortunately an Insured will sometimes have a perception of what should be paid which is contrary to what is covered by the policy. In saying that, there is sometimes miscommunication about what has occurred, and as a result claims can require reviews. All insurance policies only cover what is detailed in their Product Disclosure Statement and Policy document, and under any policy there are limitations as to what is covered.

We are always open to reviewing claims and ensuring fair outcomes, and all procedures and timeframes are in accordance with industry codes of practice and legislative requirements.

As your claim is outside the policy coverage, and directly relates to a listed exclusion, your claim has been forwarded to our underwriter QBE’s Internal Disputes Team for their review, and we await their advice.

I understand the reasons for denial have been detailed to you, as well as our suggestion that your rent loss claim should be submitted to your building insurer, who was responsible for, and paid for the original repairs.

If you continue to be dissatisfied with the outcome of your claim, the Financial Ombudsmen Service is also available to you.

 

No. It was a specific exclusion.

 

When you are selling a product EBM calls RentCover, but then refuse to cover Rent losses, you are acting in a misleading and deceptive way.

 

Did you read what they cover ? What event was it you say they wont make good on. Can't just say loss of rent, there are expected losses of rent no insurer does or will cover.

If your going to shoot arrows, you need to explain what exactly for.......

 

Unfortunately with insurance there will always be cases where people don’t get what they would like, or possibly expect, it’s the nature of the beast as it can be a difficult area to understand for many. In saying that it is one of the most regulated industries in Australia with very well documented policy terms and complaints processes, so if an Insured doesn’t agree with a settlement, and believes the Insurer has not acted by the policy terms, there is a very clear process to follow, which ultimately includes an external independent review.

No doubt it would be great if an insurance policy could cover every event known to mankind however if that were the case it would be unaffordable and no-one would insure. Hence there are specifically set down risks and events that are covered.

There are, for the record, millions of dollars of claims paid for rent loss under the RentCover policies every year.