Help! 3x leaky showers, possibly 4. $17.6k bill, insurance USELESS...

I've got 2 properties in Gladstone, the first one built in 1997, the second in 2008.

Late January I was notified of a leaky shower in the second property (2008). I opened a claim via Suncorp and to keep things brief it was an awful drawn out 3 month process with the tenant becoming furious and me constantly on the phone to Suncorp to progress the assessment, the further assessment, the review of the assessment report, etc, etc. It only just concluded with them saying they will not cover the event as it's a leak in the shower wall (rather than internal pipes).

To make matters worse, this was the second time this shower had a leak. It had the same leak 18 months prior with a local plumbing company charging me $2,500 (over many visits) diagnosing, chasing and 'fixing' the leak.

With showers, I understand there are basically two ways to fix them. The first is the 'band aid' that *may* work, which is essentially re-sealing the shower without removing tiles. Cost is around $300. If this fails, the 'full fix' is a rip out and re-tile. I was quoted $4.4k for this.

On the plus side I've got a good handyman/builder. He's given the first shower a very solid re-seal a week ago and today he's going to check if it's worked.

Now, I've just been notified the other shower in the second property is also leaking AND one of the showers in the first property. This leak seems much worse as there is lots of mould in the carpet and underlay. Now I've got both tenants complaining and asking for rent reductions, and the issue of mould to deal with).

I was about to raise another two claims with Suncorp, although I'm not keen on having another 3 month long drawn out process to hear them tell me 'no'.

Also, I'm quite disappointed to find the landlord insurance I've been paying thousands for over the years is USELESS in this situation.

Worst case scenario, I'm up for 4x rip out and re-tiles at a total cost of 17.6k. I'm sure I could work out a better deal with the builder but still it'll be $$$.

This has come at a really bad time as I was injured and off work (earning no income) for 4 months last year and I've lost around $100k on each property in Gladstone. On top of the halving in rents the properties are barely neutral and my rainy day buffer account is less than $800.

Any thoughts on the best way to deal with this? I've asked the builder to inspect all showers and report back.

Should I just go ahead with the $300 re-seal on the 2-3 other showers for the sake of fixing it fast, waiting a week and seeing if they hold?

What should I do about the mould? No use fixing it until the leak is fixed but at the same time it's something I should address quickly.
 
Sorry to hear of your difficult circumstances. To get to the best possible outcome maybe separate your issues. The investments haven't performed well which is never great but that is a longer term issue.

Right now it seems like you need to figure out what to do with shower leaks. Unfortunately insurance usually doesn't cover shower leaks due to waterproofing issues as it is generally wear and tear. Leaking pipes can be covered by some building and content insurance policies.

See what your builder says. If they are not leaking pipes and you are struggling with cash maybe do the Reseal for $300 each. Although these usually don't work too great in the long run they can work for a year or 2 which will give you time to figure out a longer term solution.
 
When dealing with Insurance Companies, you need to know your stuff. Read the policy, from front to back, then read again, then read again. Understand the "events" that they cover. Are you confident, that the event that occurred, is one of their defined events, then word your claim correctly, so that it matches their defined events. That done you should be OK. I have had lots of fights with insurance companies, and won quite a few, as I have caught them with a bit of ambiguity in their wording. Bingo, that's your wedge. That said, usually wear and tear and or faulty workmanship is not covered. Good luck.
 
I didn't even think Landlord Insurance covered things like this as it's not something caused by a Tenant.

Building and Contents insurance unlikely too I would have expected. If it is faulty workmanship from the build it might be covered in the 7 year structural warranty for the house but that will be difficult to prove too.
 
I didn't even think Landlord Insurance covered things like this as it's not something caused by a Tenant.

Thanks Westminster. Yes, you are right, in Suncorp language they wrap a Landlord insurance + Landlord contents + Building into the one product (and call it Landlord insurance).

An update:

Property 1 - Main shower. Severe rotting and damage found. $6.1k quote to fix. Cause identified by handyman as malicious/accidental damage of tile in shower causing water to funnel into wall space. Definitely not normal wear and tear.

Property 1 - Ensuite shower, no problems found (phew).

Property 2 - Main shower, $300 fix has worked! No leak after a week.

Property 2 - Ensuite shower, applying $300 fix now.


So really the main problem is the main shower in property one. I believe it should be covered and will re-read my policy.

If anyone had any advice in regards to malicious vs accidental damage vs 'escape of liquid' in this scenario I'd be grateful.
 
Thanks Westminster. Yes, you are right, in Suncorp language they wrap a Landlord insurance + Landlord contents + Building into the one product (and call it Landlord insurance).

An update:

Property 1 - Main shower. Severe rotting and damage found. $6.1k quote to fix. Cause identified by handyman as malicious/accidental damage of tile in shower causing water to funnel into wall space. Definitely not normal wear and tear.

Property 1 - Ensuite shower, no problems found (phew).

Property 2 - Main shower, $300 fix has worked! No leak after a week.

Property 2 - Ensuite shower, applying $300 fix now.


So really the main problem is the main shower in property one. I believe it should be covered and will re-read my policy.

If anyone had any advice in regards to malicious vs accidental damage vs 'escape of liquid' in this scenario I'd be grateful.

Please update with your policy and how it's worded to cover the main problem, I'm interested.
 
Hi David, I recently did some bathrooms that need retiling. You mentioned worst case your up for 17k. After you find your leak, If your tiles are sound and not drummy (no air gap, good bond) You should be able to tank (water proof membrane )over old tiles and then put new tiles over top. This will save you thousands. Good luck
 
Hi David, I recently did some bathrooms that need retiling. You mentioned worst case your up for 17k. After you find your leak, If your tiles are sound and not drummy (no air gap, good bond) You should be able to tank (water proof membrane )over old tiles and then put new tiles over top. This will save you thousands. Good luck

This is a good idea, as it's looking like I may have trouble claiming this.

From the Suncorp Landlord Policy

We do not cover
? wear and tear, or loss or damage by the escape of liquid occurring as a result of a gradual process of leaking, splashing, dripping or overflowing over a period of time when you could reasonably be expected to be aware of this condition;
? the cost of repairing or replacing the item from which the liquid escaped;
? fixing leaks that have not caused permanent damage to your property;
? loss or damage to, or caused by, a leaking shower floor or base, shower cubicle walls, shower glass screening or doors;
? broken, worn or aged tiles or grouting in walls in bathrooms, kitchens or laundries unless the damage is caused by liquid leaking from pipes in walls or floors (not forming part of a shower cubicle wall, floor or base);
? loss or damage caused by wear, tear, rust, fading, rising damp, mould, mildew, corrosion, rot;


One 'negative' of investing in these resource/mining towns/cities that is never mentioned is the type of tenant you get. 3-4 high paid tradies living in a single 4 bedroom house. Guys who are quite rough with the properties and seems to have a lot of hate towards landlords about the high rents. I've get 80% of my maintenance requests from these two troublesome properties, door handles 'falling off' and other suspect claims - these tenants are extremely high maintenance.

I honestly believe a past tenant has kicked this tile in causing this damage (looking at the photo you'd need to have a boot on) in an act of malicious damage knowing it'll cause a big problem like this. Unfortunately I have no idea which tenant it was, I've had 4 groups in the last 3 years.

I will also review my insurances, Terri Scheer seems to have a much less 'get out' clauses regarding showers.
 
feel sorry for you,

personally I think the point of insurance is to cover all reasonable events and for you to do minimal work, thats what you are paying for, like a car accident thats not your fault (give the company their details, and take the car to mechanics)
 
Yes it's a shame.

The concept of insurance is to cover me for these unexpected, 'no fault' expensive events.

Instead, it's me spending hours on the phone chasing the company, for them to come back 3 months later to tell me it's not covered. Meanwhile, I have to get a shower working for a tenant who's demanding a rent reduction.

I'll be doing a good review of the various providers in respect to shower leaks - given half of my properties have had or do have some kind of expensive shower problem (both new-ish and old properties).
 
Yes it's a shame.

The concept of insurance is to cover me for these unexpected, 'no fault' expensive events.
).

This idea is wrong.

Insurance is designed ( and priced) to cover certain unexpected events that are defined in the policy. General maintenance and wear and tear issues are not unexpected, and not covered.

If you could get your concept of insurance, the cost would be prohibitive.
Marg.
 
Insurance is designed ( and priced) to cover certain unexpected events that are defined in the policy. General maintenance and wear and tear issues are not unexpected, and not covered.

Agreed.

I guess the point here is my warning to others, in regards to basically ANY type of problem a landlord could have with a shower, you are NOT covered.

In addition to this, shower problems are very likely. More than half of mine have had a problem, 3 of them are less than 10 years old. Cost to fix is $500 - $6,000. My PM told me in her previous agency she was doing one a month on average (perhaps 150 on the rent roll).

I've learned my lesson.

It's funny how we spend $70 each year to check on smoke alarms whereas most of us don't think to check our showers regularly. PM's don't pick this up and tenants don't let you know.
 
Since I noticed I one of my policies it says does not cover leaking from a shower recess, I have an annual reminder to ask PMs to check and re grout.

Is annual re grouting enough if no prior problems, your story is a bit scary..
 
Since I noticed I one of my policies it says does not cover leaking from a shower recess, I have an annual reminder to ask PMs to check and re grout.

Is annual re grouting enough if no prior problems, your story is a bit scary..

It's hard to say. That seems overkill.

Probably a $300 re-grout/re-seal once a property is 5 years old should do it (waterproof membrane breaking due to slab/house movement), and also re-grout at any sign of swollen skirting boards or anything like that. Maybe every 5 years?

It would be good to come up with a default strategy for showers.
 
Back
Top