My $10k Insurance Payout Story (Ice Addicted Tenant)

I learned a lesson this year. One of my tenants stopped paying his rent on time. At first I wanted to be understanding and lenient; we all go through hard times! But after months of late rent and broken promises, I finally evicted him.

A few days before the court hearing (for the eviction), my property manager left for another agency and was replaced (by someone who turned out to be totally incompetent). While the eviction occurred just fine, I was a little concerned that my new manager was putting in a claim (on my behalf) for some damage and requested that I replace all the carpets. They didn't want to finalise the claim though until they re-let the property, they way they could claim the loss of rent too. I got my insurance with NAB (they use Allianz) so I had 15 weeks cover.

But after almost two months, the property was STILL not re-let and I couldn't figure out why. I decided I couldn't rely on my property manager anymore and took matters into my own hands. I went down to the property to take a look myself and couldn't believe how much of a mess it was:

• Carpets and vinyl destroyed (black marks, sticky)
• Rubbish all over the yard
  
• Mouldy curtains
• ~100 nails randomly hammered into various walls

No wonder it wasn't getting re-let! I spoke the the neighbour: she told me that the tenant was addicted to ice and in the final weeks was hosting dozens of other homeless addicts at the house (that's when I suspect the damage occurred). I quickly organised getting it all fixed...

I also realised I needed to make the claim with Allianz myself (I couldn't rely on the manager). They were so hard to deal with. They needed police reports, they didn't want to cover the carpets, they didn't want to pay for the damage unless they had evidence regular inspections were carried out... they lost the information I sent them on more than one occasion, then, the lady who was looking after my claim went on holidays so I had to start the who process again! A nightmare!

To make matters worse, I only had 2 days left of the 15 weeks loss of rent. Strained financially, stressed and hopeless, I literally got on my knees and prayed.

God answered my prayer, big time. The next day I got a call (out of the blue) from my old manager: she had tenants who wanted a property just like mine and would show them around if I'd agree to switch management to her new company. The new carpets were getting laid that day, so I said agreed. They inspected the next day and paid the bond. They started their lease literally on the first day that I didn't have rent coverage; literally to the exact day! I also had an easy-out for firing my incompetent manager!

Then, more providence! A new agent (from Allianz) took up my insurance claim. He was so good, listened to my case, showed compassion, always returned my calls. Within a week the $7.5k for the damage and loss of rent was in my account.

Then, more providence! Though I'd previously been declined getting reimbursed for the carpets the new agent, without me asking, tried to resubmit the claim to the back office. He was successful and I received the full reimbursement for the carpets WITHOUT an additional excess. I only paid one $500 excess...

Talk about a turn around....!

So anyway there's my story, I'd normally offer a (half) sincere apology for getting a little 'preachy' but I'm pretty stoked with how my prayer was answered in this story, so I'll omit that

I actually originally intended to post this as an intriguing introduction before asking for insurance advice.. I think I'll write make that a seperate thread...

Request for Insurance Advice: How Much Do You Pay? What's Included?

Cheers!

 

That is fantastic news. It is always a worrying sign for any property manager when you read cases like this and things aren't getting done for the owner, who we need to look after at all times. It is always good to hear what happens so not only property managers are aware of what has happened but owners too. Thank you for sharing your experience.

Insurance companies have always been hard to deal with but sometimes you have to find the right one in situations like this.

Sending positive vibes that the new tenants are fantastic and you won't have to experience anything like this again.
Samantha Ellis

 

Thanks for the post. A good friend of mine was in a similar situation but with better property managers, thank goodness.
Between the 3 monthly inspections, the tenants/ dealers set up a lab in this pretty well-to-do suburb and completely rubbished the house. Then there was the show-down with the police.
In the long run, the house has been given a complete cosmetic reno with an interior designer/ project manager provided by the insurance company. The rent has gone from something like $470 per week to $700 per week with a young profrssional family.

 

You are from property zest! Wow! Plz say hi to Kaz for me. She was probably the most influential factor in starting my property journey. I had a ~2hr return joinery to work each day as 21 yo, first year teacher in 2012. I listened to her podcast, got hooked, the rest is history! Can't thank her enough.

Would love to be on the show one day!

 

Thanks @WattleIdo !

"Nothing has greater impact on your wealth & consumption than your choice of house and neighbourhood"

Can you explain this to me? I can interpret this in two ways:
1: Living in a highSES area will put you in contact with other high SES people and their mindset
2: Living in an inner city/chic area will drain your capital, as you have so much opportunity to spend!

 

Haha. The 2nd one is the intended meaning but sometimes you've got to admit that the first one is true too!