House Fire - Help please

[ZenMicro]

Hi everyone,
First post here, been looking around for a while.

Where should I post this ?

I have a house ( rental ) which has had some major damage done to it by a fire. Tenants mistake. no one injured.

Kitchen is toasted and roof structure destroyed, the rest of the house has bad smoke and water damage.

I am looking for ALL advice and ideas. big or small.

The property is wood house which is about 60 years old.
I have landloards insurance. As per this forum. Thank you.

The insurance Co.
1. wants to replace the roof structure with pine ( not the original hardwod ) I think this is not keeping with the original structure and will also devalue the property.
2. will replace all ceilings but not walls. just clean and paint as per the report.
I am worried about water damage and warped walls, possible mold, toxins and smells.
3. Originally they said they will replace the carpet but now will just steam clean them.
4. I hear that the smoke smell will linger for a long time, is this true ?
5. Should I get a structural engineer to assess the damage and cost of repairs or possible right off.
Where can I find one ?
6. How do I go about negotiating with the Insurance Co.


My wife and I want to live in the house in the future and we are both a bit sensitive to hard chemicals
These are my major concerns.

I spent $20,000 on the house 2 years ago when I bought it. New carpets, paint inside and out, light fittings etc.

Thanks.

 

[Ricardo29]

sorry for the loss zen....

a few points:
insurer has the option to repair, replace, settle. always "at their option".
they can use "as close as possible" to the original.
if they can repair, they will generally repair.

they are not obliged to give you newer/higher values. they are only obliged to do their best to put you in position you were prior to loss. in any event, you are going to be worse off...almost always.

im not trying to be harsh, just stating insurers rights under every insurance policy. this is how it is,,,,,its NOT 'insurers ripping you off, or using hidden wordings' or such things that people always claim.

 

[The Y-man]

Sorry to hear ZenMicro......

My first thought was perhaps sell the property once it is repaired? It will (should) look freshly done up, and you might just want to get the place "out of sight, out of mind" and start afresh looking for your future ppor elswhere? (dare I say it... a "firesale"? sorry...... )

Good Luck,

The Y-man

 

[Pushka]

We had a house fire in October last year due to an overheating computer on standby. It happened at 4am in the morning and thankfully, as it was in my son's bedroom the $12 smoke detector over his head was activiated and saved his life, and also, he got the fire under control just as the firies arrived and it was about to go into the roof.

Our company SGIC (IAG) was fabulous - replaced everything new for old. They got in cleaners who would have cleaned the whole house to get rid of the smoke smell but it was only needed upstairs. It took about 4 weeks to clear but it is important that any soft furnishings (eg sofas, cushions, mattresses, curtainsm carpets, rugs, clothing etc) are thoroughly cleaned and the Insurance should cover this.

Our walls were replaced because they were damaged. If your walls are damaged they should be replaced. They replaced the whole carpet, not just the burnt area, and as my sons room is huge, that was quite an expense for them.

I think, other than the scare, the room was made better than it was before, due to the carpet replacement.

Good luck!

 

[lizzie]

sorry to hear it zen - we've just had waist deep floodwater thru one of our rentals and waiting to get the builders quotes back for insurance purposes.

all i can suggest is that if the walls don't come up to scratch you get on the backs of the insurance company for replacement - they have an obligation to restore back to the state it was in prior to damage, so don't hesitate to nag if required.

 

[Tizzy]

Like Y Man, I think I would be tempted to clean up the house and sell the place.
Mainly because there will be reminders all over the place and the insurers won't spend more than they have to, so could you ever be really happy living there?

(aside)
Pushka thank you so much for that story, I've got even more reason now to tell my kids to turn the damm computers off and not leave on standby!!

 

[ledd]

I don't know, but if the property still gives a good return once it is repaired then I would seriously consider keeping it. I mean, If the numbers still work it makes sense to keep the place, doesn't it?

However, it may now not be the best property to move into as your PPOR in terms of memories.

Cheers,

Mark

 

[ZenMicro]

Hey everyone,

Thanks for the replies, The Fire sale one neally made me cry.

I live in Tokyo, but from Brisie.

The house is in a good area backing onto bushland, back of the house is facing N/ NNE so I want to keep it to live in.
I bought it to live in when I return to Oz. Just renting to help loan.

Maybe I should try and get it writen off and rebuild. Any ideas ?

Ideas welcome.

 

[ggumpshots]

Hey everyone,

Thanks for the replies, The Fire sale one neally made me cry.

I live in Tokyo, but from Brisie.

The house is in a good area backing onto bushland, back of the house is facing N/ NNE so I want to keep it to live in.
I bought it to live in when I return to Oz. Just renting to help loan.

Maybe I should try and get it writen off and rebuild. Any ideas ?

Ideas welcome.

Rebuilding could trigger capital gains tax. Someone with more knowledge should post.
Also keep in mind the 6year rule and if it applies to you.
Ring the tax office and get them to ring you back if you have questions. I do this all the time when I have time.
Talk to them and if they keep going to their supervisor to answer your questions ask to be put on to the supervisor.
Ring back the nextday as I have had 3 different answers on the same question .
Geta private ruling if things arent straight forward .
I would be keen to know the outcome if you follow this line

SPeak to your PM . If you dont have a reliable one you could be in the pooh

 

[Pushka]

(aside)
Pushka thank you so much for that story, I've got even more reason now to tell my kids to turn the damm computers off and not leave on standby!!

This should do the trick then Tizzy! (Its a little pixellated to reduce the size but you get the drift! )

(Click on it to get the larger size)

 

[ZenMicro]

Hi all,

The Insurance Co. first stated they will replace the carpet which was new 2 years ago, now they say they will clean it.
Have done some searches with google alone the lines of fire / smoke damage an all state the the extended period of stink ( post repairs ) if everything is not removed and replaced.
Maybe I should get an engineer to access the damage.

 

[Raddles]

HI there
I can empathise with your loss having lost 2 properties in the Canberra bushfires. We were in a different situation given that nothing could be replaced - everything had to be bulldozed and started again.

My dealings with insurance companies is that you have to be like a terrier and keep at them until you get what you want. If you want walls replaced - get a building report to support your view that they have to be replaced. I note that I have used letters to the editor (when my parents were asked to substantiate their losses in the bushfire), complained to government departments - basically done whatever it takes. Often when an Insurer first gets your claim - they will be looking at ways to fobb you off - don't let them. If you have any difficulties, remember there is an insurance ombudsman who can be approached.

I remember vividly the smell of the suburbs in Canberra which were affected by the bushfire - it does eventually subside - but if you need to have carpets replaced - persist with it.
thanks

 

[Pushka]

Hi all,

The Insurance Co. first stated they will replace the carpet which was new 2 years ago, now they say they will clean it.
Have done some searches with google alone the lines of fire / smoke damage an all state the the extended period of stink ( post repairs ) if everything is not removed and replaced.
Maybe I should get an engineer to access the damage.

I would check the wording of your policy; usually anything under 5 years of age that is damaged would be replaced. Our carpet (as in the fire above) was over 15 years old and there was no question - they replaced it without a murmur - I didnt even have to ask.

SGIC (IAG) for those who might be interested! And even though we had this claim, they still gave us the no claim bonus for the next years premium because we had the policy for four years and this was the first claim! I have now taken out landlord insurance with them!

 

[yadreamin]

sorry to hear it zen - we've just had waist deep floodwater thru one of our rentals and waiting to get the builders quotes back for insurance purposes.

all i can suggest is that if the walls don't come up to scratch you get on the backs of the insurance company for replacement - they have an obligation to restore back to the state it was in prior to damage, so don't hesitate to nag if required.

Just wondering how you got on with this ip and the damage lizzie?
Wasnt it just about to sell?
What happened to your tennants?
cheers yadreamin

 

[lizzie]

Just wondering how you got on with this ip and the damage lizzie?
Wasnt it just about to sell?
What happened to your tennants?
cheers yadreamin

well - actually the purchasers were on the way to exchange contracts on the day of the flood, but couldn't get thru to their solicitors because of the storm. after the flood they waited and waited (both builder and insurance company took forever - but i guess there was over 10,000 assessments required in the area), really wanting the property but eventually they had to pull out two weeks ago and buy elsewhere because they had sold their own home and had to move - and after 8 weeks without much movement we didn't know how much longer the process was going to take.

anyway, early in the process (before the purchaser pulled) the insurance company wanted to do a replacement, but i argued that the house was under contract, that it was currently two flats and the purchaser wanted to revert if back to a single dwelling, so it was pointless to put all new "stuff" in only to have it ripped out again. we sent them a copy of the contract and eventually they agreed to payout the replacement cost instead.

last friday the insurance company advised our claim would be processed and we should recieve a cheque by the end of next week.

one of the tenants only had minor damage so stayed, the other left because the damage was more severe (hws destroyed etc), so at least we still had some income coming from the property while the insurance sorted itself out.

we planned to tidy the back flat up and re-rent, and also rent out the 3rd garage as it is spare, for some extra income - only to get another offer today, for more than the pulled out offer (if i include the insurance payout on top of that). needless to say, i've accepted.

it was a property we could still eventually knock down and build 2 free standing dwellings on, but i know we would have some strife with the council to get it all thru because of the flood zoning (which was proven correct ) and neighbour issues. at this stage i'd rather take the money and concentrate on our 4 townhouse development, and look for another development site that would be less hassle - or buy a couple of small fho priced properties ready for the $20,000 labour fhog to push prices up.

and to think - i'd only put my "money flowing" loa out in regards to this property only 2 days ago!

just for the books - one reason the floods were so bad in this particular area was that two shipping containers floated away and got themselves stuck halfway down the huge stormwater pipes draining hamilton and hamilton north, making themselves a lovely dam ... and so even houses in the non-flood zone got water thru them. the authorities had a lovely job trying to ge them out!

so, all is good in the world

 

[yadreamin]

Thanks for the update lizzie. Jeez you certainly had a few twists and turns going on. By the sounds of it though it has all worked out very nicely for you and not bad timming as well.
Good luck with the settlement.
cheers yadreamin