Insurers pledge to stop billing tenants for accidental property damage

This couple were slugged $78k over a fire in their rental. Their story led to a 'huge win for renters' across Australia

Insurers pledge to stop billing tenants for accidental property damage

In September, the ABC revealed a couple from Horsham in regional Victoria were sent a bill for $78,000 after an accidental fire at their rental property last year.

Shortly afterwards, the landlord's insurer, GIO — which is owned by Suncorp — dropped its claim for payment.

However, the story and campaigning by consumer advocates has prompted wider changes.

All major insurers have now committed to not bill tenants for accidental damage to property, consumer group Choice says.

Choice campaigns director Erin Turner described the old policy as "deeply unfair" and was pleased major insurers had agreed to meet minimum practices

Key points:

• Some renters had been billed thousands of dollars for property damage that was accidental or they did not cause
• All major insurers have now promised not to directly pursue renters for accidental or unintentional property damage
• Consumer groups say it is a "huge win" but they want legislative change to protect renters in the long run

 

Accidental damage. Yes makes sense. A bit of adisgarce to think a insrer sought to cover a owner for a loss and then hold another party liable for their risk. But expect premiums to possibly rise if insurers pass on the increased loss. But where the damage could be alleged to be more than accidental then perhaps they may become more aggressive.

 

Some weird stuff in there - I suspect possibly misquoted.

But law reform isn't needed - tenants already don't have to pay for accidental damage. The damage has to be intentionally or negligently caused.

I don't know why an insurer would promise not to claim for unintentional damage either. Some negligent damage is unintentional, but well within a lessor's (or insurer's) right to claim for.

I guess the issue is arguably that people need to know their legal rights better. The concept of 'negligent damage' is pretty poorly understood, even by property managers.