Demolishing a three bed Fibro in Horsham

[Gentle_Chief]

Hiya All,

Appreciate your thoughts what would be reasonable cost for a demolition project of a 3 bed fibro in Horsham. It is fire damaged and the council wants it pulled down asap and has issued an emergency order. My Insurance is 'yet' to pay out as they are finalising the payment figures. 13K has been earmarked for demolition, but was not sure if it would suffice.

Appreciate if you can share your experiences on demolition projects.

Cheers,
GC

 

[Melbournian]

wouldn't be suprised. if it is damaged there could be a asbestos risk to it.

 

[Gentle_Chief]

Yes, there is asbestos in it as the property is a pre-50s build.

 

[JWR]

Is there anything recoverable?

Maybe someone with an IP in Horsham can come and help by taking the stuff inside that still has value... and store it in the shed.

Hire a monster truck and ram the house!

 

[Gentle_Chief]

yes there are stuffs that can be recovered... like two A/C units, new stove (replaced only 3 months back) and maybe the kitchen cabinets. The fire was in the living room and bedroom1. But it has made the house structurally unsafe. The back of the house is okay as per report, maybe soot damage. But council & police have cordoned off the site.

I like your monster truck idea JWR, but maybe not!

However, coming back to the original question - any idea on the approx demolition costs people? 3 bedroom fibro with asbestos in Horsham....

 

[matto_]

Not sure on costs, but how did it get fire damaged?

 

[morty]

Hi Gentle Chief,

I have had a couple of houses demo'd in country victoria and $13k sounds about right. Some companies are about $15k and others are more like $10k. Don't let them carry on about the cost of asbestos bumping the price up, all these old houses have a certain amount of the stuff in them so it's just par for the course. Just make sure you're signing something that says the price is for ALL asbestos to be removed/disposed of.

With regard to the fire and the insurance company i have also had some dealings in this area.
What you need to do is dig out your policy and make sure you know all the wording regarding being covered for fire. Don't just sit back and let the ins co. decide what their payout figure will be as this will be drastically different from what you are entitled.
If the fire has rendered the house structurally unsafe then it is a full knock-down job and you need to stick to your guns until the ins co. come to the party.

I had a house gutted by fire the yr before last and my insurance company's first offer of cover was $25k! And this was on a policy i'd paid for for $200k!!
Long story as it took about 8 months but i ended up with a cheque for $199,400 (they took out the excess!) and i had them pay for ALL demo, fencing etc on top of this!

Most people would have given up early and taken one of their many offers but the bottom line is that you need to work out what you are owed from them and make sure you get it.

good luck and let me know if you need any help with them

Morty

 

[Gentle_Chief]

Hi Morty,

Many thanks for your reply. I have had 3 quotes done for the demolition work. One quote has come in at 30k, one at 25K and one at 17K.

I am thinking of starting a "demolition & earth moving company meself".
Jeez, these people!

To remove the asbestos they have quoted 12.5K and to knock-down 4.5K. I would have to be going with the 17K quote as I have no other alternative I see.

Yes we are digging in for the long negotiation with the Insurance company. The Loss adjuster has put in her recommendation for a full pay-out. It has been accepted in principal it seems. We will have to wait for the final outcome (pay-out figures) in another 10-12 business days.

The council had issued a EO (emergency order) to knock down the building as it is structurally unsafe. The insurance forensics team went in to see the cause of the damage and all clear was given.

According to our PM, the tenant was highly sedated with Valium and had a couple of glasses of wine with the candle burning. The screen caught fire and within moments the entire front of the house was engulfed in fire.

It has been one long winding road of acceptance for us. To move on from that day. We are under-insured on this one and will have to write-off some I believe.

We have learnt some more from this I guess and will keeps us strong - 6 years of property investing and we have just scratched the surface!!