Hi there I have a 3 bedroom house which I converted into two bedrooms with one bedroom becoming a sitting room when my disabled daughter came to live with me several years ago. I build a small room at the back of the garage for her to use as a kitchenette. I got approval for the council for this addition under the guise that it was to be used as a craft room. I then had an electric upright stove installed which was not approved by council. My daughter not longer lives with me and I was thinking of renting out the space for an occasional airbnb or student letting. However I have been told by a friend that, due to the second stove, I would not be covered for house insurance should a fire start and even if the fire wasn't in that part of the house. I guess my best option is just to remove the stove which would be a shame as it cost quite a bit and would make a great accommodation for someone in this very big house I live in by myself. Any advise would be most gratefully received. Thank you in advance.
I have zero knowledge of these laws for NSW, but general knowledge. Can you get the room approved by council today? I have stayed in motels and BnBs around Australia that had no stoves with signs stating camping stoves are not to be used by guests. A bar fridge, microwave and electric jug served fine. @Lizzie knows Newcastle
Thank you for your reply Lizzie. I know the Council won't approve as I do not have a firewall separating the two sections of the house. My question pertains primarily to how this stove will affect me should I have to make an insurance claim in the future. Regards
You can't have an inbuilt stove. You could, however have a portable one. You know the on the bench type one. If the area is separate living (as in no common areas with you) you would need to let your insurance company know also.
I see you issues. Does having the stove negate your insurance? Does having separate party renting part of the house without fire walls, or without approval from local council negate your insurance? Is the current set up legal? Would be get past council and would you be allowed to rent it?
I have recent experience of a fire and an insurance claim that went well. It was a rental lived in by family member who also had a friend using the garage area. The friend wasn't on the rental agreement. There was no issue making the claim. I know this is not exactly the same as ur situation, but i read these warnings about insurance being invalidated but have lived experience that was quite positive. So i do wonder whether there might be less of an issue in real life vs theoretically.
Thank you for your comment. I was of the same mind regarding rumours re insurance and actual consequences. That's why I put up this post to test it out. However when all is said and done I realise that the insurance companies as getting far more brutal with premiums and claims since the bushfires and floods so I have decided to go with my intuition. I called the electrician and have asked him to remove the stove. Better for it to be gone and not have sleepless nights worrying!!! Cheers
So, in the event of a claim for fire damage (or worse), would your insurer ask questions if you had a student sleeping in your craft room? Or an AirBNB guest? I know I'm probably more risk averse than many, but I've been sued (not to do with any situation to do with a rental), and I think it makes me more careful than ever.
The biggest risk to insurance is not disclosing material facts when the policy is initially applied for. Be honest and open and indicate that the room is a conversion and contains a oven etc. The type of policy may also exclude short stays etc. In which case, all consequential loss may be uninsured. That said, It doesnt make the use of the room for short stay legal for councils. They didnt approve use for additional accomodation. Read the policy too before applying eg Suncorp GIO seems to have numerous clauses in the Building PDS where a room is not approved that will deny loss and cover even to the other elements of the building.
