house damaged from car going through

[froggy]

Hi all , just wanted to ask as a friend who rents there house has had the neighbours car go through there lounge room !
I just wanted to know what happens to the tenant...does the owner have to pay for temp accommodation and storage of belongings as the house is open and can be entered easily through the giant hole in wall , and also does the owner insurance cover the belongings of the tenant in this situation ?? just wanted to ask as i have never heard of anything like this before. thanks

 

[Alabex]

I would say the landlord would have to provide alternate accomadation for the tenants - or at least payment towards it... however should be covered under the LL insurance policy.

The tenants stuff that is damaged would be their own contents insurance.

 

[MonSqueek]

The LL insurance policy should cover the cost of providing the tennant and the tennants contents alternative accomadation - However any of the tennants contents damaged during the incident would have to be covered by the tennants contents insurance.

 

[poppy]

I read my landlord insurance policy pretty carefully and have also researched and read a number of other company's landlord insurance policies prior to choosing my own.

I would say there is no chance the LL insurance will cover you to provide alternative accomodation for your tenants and certainly not storage for their contents. The tenants contents are not part of your policy! If it's not stated specifically in the PDS, they won't cover it.

Many insurance companies will provide alternative accommodation for an Owner Occupier who cannot live in their home due to an insured event. That is a different situation altogether.

Many insurance companies would also provide the landlord with loss of rent cover if the IP could not be rented due to the damage (ie the tenants had to move out and obviously you could not charge them rent during that time). I highly doubt the insurance company is going to put your tenant up in a hotel - they will only pay you for the loss of rent which will be much less than the cost of the hotel.

If anyone can quote me something from a LL insurance PDS stating otherwise, please feel free.

I also doubt the tenancy legislation, bad though it is, requires you to pay to put your tenants up elsewhere. However, you obviously can't charge them rent whilst the house is unliveable. You also would likely have to release them from their lease without penalty so they could find another place. If anyone can quote any area of the tenancy legislation that requires the landlord to pay for tenants to live in alternative accomodation, due to an accident that is no fault of the LL... please feel free... I'm not an expert.

Edit: Just to add, the only situation where I can see the insurance covering the tenant's hotel and storage costs, would be if the tenant actually sued you and won and then it might be covered under the legal liability section of your insurance. But they would have to take legal action! If you just cough up out of the goodness of your heart, no way the insurance is going to pay.

 

[geoffw]

I don't know the legalities.

But I might be looking at the driver's compulsory third party insurance, rather than any landlord insurance.

 

[poppy]

But I might be looking at the driver's compulsory third party insurance, rather than any landlord insurance.

Hi geoff,

Compulsory third party is for injury to persons only.

If the driver has optional third party property damage or comprehensive insurance, then they may get payment for the property damage from the driver's car insurance.

However, it seems unlikely the car insurance company would cover the indirect damages, such as the landlord paying for tenant's alternative accomodation. eg If someone hits your car and they are at fault, and their insurance company pays for your car's repairs, I don't think their insurance company would reimburse you for the taxi you had to take to get home after the crash, or any other costs resulting from the inconvenience of not having your vehicle.

 

[geoffw]

You may be right Poppy. I didn't know what CTP covered.

However, any claim should still be personally against the driver, if the driver was responsible for the incident, and was not covered by any appropriate insurance.

MrsW had a problem a few years back, where she did not put the handbrake on, and the car ran into the colourbond fence. She had to pay for the replacement fencing.

She was fortunate. A meter one way, and she would have had to pay for a rebuilt barbeque. A meter the other way- for rebuilding the corner of the house.

 

[moyjos]

Gggrrrrr

I wil try NOT to rant.

This post brings up a touchy subject for me

Why (as a commercial tenant in a major shoping centre) did I have to provide proof of my insurance(public liabilty AND liabiltiy against anything happening to my shop - fire, flood etc) before my lease was renewed every year (regardless that i had a 3x3x3)
BUT
It is apparently illegal to demand my residential tenant have insurance against them burning down MY house????

GGGGGGGGGGGGGGGGRRRRRRRRRRRRRRRRRRRRR

Sue

 

[Perp]

In QLD, there's no responsibility on the part of the landlord to provide alternative accommodation, however the tenant can get out of their lease. The tenants' contents are not the landlord's responsibility, though the tenant can and should claim for damages against the driver (and their third party property insurance).

And while I'm on the subject, third party property insurance should be compulsory as well as third party personal. If you want to drive on the roads, which is a privilege, you should have to be responsible for the consequences. Risk your own car if you want, but what right do you have to not protect others against your actions? It's ridiculous that it's permissible to not have third party property.