Investment property was being used as crop house

Discussion in 'Legal Issues' started by santhoshjose, 18th Jul, 2021.

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  1. santhoshjose

    santhoshjose Well-Known Member

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    My investment property has been used for marijuana crop house over the last 6 months and has been completely wrecked. Because of COVID in Dec at Victoria, I wasn't getting any insurers to cover me for the malicious and though my insurance with Budget direct says home lease out to tenants. they are refusing to cover anything, though I have been paying top premium on time.

    My property agent who had verified all the documents before letting this property for an annual lease, refused to do inspections over the last 6 months respite several requests all in the name of COVID. I am now left with all these expenses to the tune of thousands of dollars respite doing everything right while being interstate with no options to travel to Victoria.
     
  2. wylie

    wylie Moderator Staff Member

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    That's awful. Have you gone to the insurance ombudsman?

    If you have landlord insurance, on what basis are they denying cover?
     
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  3. MTR

    MTR Well-Known Member

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    Sorry to hear this
    Insurance onbudsman, may be able to help you
     
  4. MTR

    MTR Well-Known Member

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    just mentioned this:)
     
  5. wylie

    wylie Moderator Staff Member

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    I mentioned it in my initial post? Beat you to it. :p

    I've been told that just threatening that you will contact the ombudsman can often get results. The figure I was told was that just bringing in the ombudsman can cost the company you are complaining about a thousand dollars or more. I've no idea if that is the case or not.

    You must have tried to resolve the issue with the insurer (or telco, or whoever you are dealing with) before approaching the ombudsman.
     
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  6. MTR

    MTR Well-Known Member

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    It was a case of my word against the roof contractor. insurance co chose contractor.

    i had to employ an expert that supported my view, then ombudsman got involved and evidence stacked up in my favour


    I won $30,000 claim new roof
    Took 12 months.
     
  7. santhoshjose

    santhoshjose Well-Known Member

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    Thank you. I haven't reached out to the ombudsman yet. Was planning to do that.

    What about property management? Arent they liable to cover assuming a lot of this could have been avoided if they were due diligent with their inspections, including virtual. How can I have them accountable for their negligence?
     
  8. santhoshjose

    santhoshjose Well-Known Member

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    Who is the expert in situations like this? A lawyer or someone else?

     
  9. MTR

    MTR Well-Known Member

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    No

    we had a storm
    so the insurance roof contractor placed a tarp on the roof using nails instead of pegs in the ground, damaged my roof, and then advised insurance company that damage was pre existing

    I paid for a second opinion, evidence was in my favor. Insurance company still went with the contractor. I lodged complaint to Ombudsman, judgement went in my favor.
     
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  10. santhoshjose

    santhoshjose Well-Known Member

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    What about property management? Arent they liable to cover assuming a lot of this could have been avoided if they were due diligent with their inspections, including virtual. How can I have them accountable for their negligence?
     
  11. MTR

    MTR Well-Known Member

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    Do you have the original inspection report and your PM contract agreement
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    I'm reading that the OP did NOT have LL cover - only building insurance.

    OP - correct me if this is incorrect.

    The Y-man
     
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  13. Stoffo

    Stoffo Well-Known Member

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    When was the property vacated/possession regained and you were made aware of issue's?
    When was insurance claim lodged and by whom ?
    What sort of insurance have you been paying for ?
    What sort of property damage ?
    Saying it is "completely wrecked" isn't a description......
    Will the bond cover repairs maybe
    There have been places that have picture nail holes in walls from plastic being laid out and hooks in ceilings, to places that have had holes cut in floor boards and ceilings, so damage can vary considerably but is usually limited to bedrooms/lounge area's.

    Your PM isn't really at fault here as they have followed the guidelines (funny they can't do an inspection during lockdown but can show a house 1on1) and all of your issues could have been done on day one with the tenant doing a runner just prior to a scheduled inspection.

    You can't blame anyone except the tenant
    These things happen, repair, release, hope insurance pays
     
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  14. The Y-man

    The Y-man Moderator Staff Member

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    What's the exact damage?

    Crop houses don't necessarily damage houses AFAIK

    The Y-man
     
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  15. Mark F

    Mark F Well-Known Member

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    Where is @datto when you need an expert opinion?
     
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  16. datto

    datto Well-Known Member

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    Crop houses should not cause much damage if any at all. A few drill holes here and there. A hole in the ceiling for exhaust ducts etc. Nothing major.

    However amateur growers may cause severe water damage or even a fire.
     
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  17. D.T.

    D.T. Specialist Property Manager Business Member

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    EBM covers all of this sorta thing. Not sure why people insist on going with cheaper insurers then being surpised when they dont cover stuff.
     
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  18. Joynz

    Joynz Well-Known Member

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    Do you have landlord insurance?

    What is the damage, exactly?
     
  19. santhoshjose

    santhoshjose Well-Known Member

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    Yes I have landlord insurance but they are refusing to cover this as crop house. There is some water damage and holes on the walls and also electricity lines being burnt. They had connected to the mains bypassing my meter. So I guess they have used a lot of electricity from power company. Do you know how power company manages that loss?
     
  20. Firefly99

    Firefly99 Well-Known Member

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    A gazillion power points. I’ve purchased a couple of ex grow houses - no shortage of power points.
     
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