Arsonist strikes in Adelaide

[Darren1968]

I heard on the news this morning that arsonists burnt down several townhouses that were under construction in the Adelaide suburb of Gilles Plains and unsuccessfully attempted to do the same to at least one other in the same complex.

There's going to be one unhappy investor out there today I think!!

Whose insurance covers this. The builders?

I guess the investor is stuck with paying the extra interest they are going to be up for due to the increased construction time now.
That has to suck!!

 

[hobo-jo]

If the landlord had taken out landlords insurance that covered 'loss of rent' would they be covered?

Pretty horrible thing for someone to do.

 

[poppy]

The builder and/or the builder's insurance will pay for the damage.

The investor/purchaser is left to pay the extra interest waiting for the house to be rebuilt.

It would not be normal to have a landlord or building/contents policy in place prior to the building being completed, so the purchaser will be left to foot the extra interest/loss of rent on their own.

Actually even if the purchaser had taken out a landlord policy and the insurer had agreed to cover them (unlikely - they normally ask you "Is the home under construction?" when you take out the policy), some policies do not provide cover, particularly rent loss cover, when the home is not lived in and/or there is no lease in place.

I have a house being built in Adelaide and I will be surprised if it ever gets finished and tenanted due to the huge problems with crime. I think that the cost of crime is going to see building costs rising way above the cost of inflation in the future.