Hypothetical: If a rental is storm damaged & tenant needs temp accomodation.

Discussion in 'Legal Issues' started by bmercury, 15th Apr, 2015.

  1. bmercury

    bmercury Member

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    Does the tenant have any recourse against the landlords insurance since they'll be paying significantly more for temporary accommodation while the rental property is repaired?
     
  2. Angel

    Angel Member

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    Yes, to the best of my knowledge. This situation is covered within Landlord's Insurance and Strata Insurance but not ordinary building insurance. Check your own policy documents of course.
     
  3. thatbum

    thatbum law talking guy

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    Probably not, if its genuinely a storm or something that is not the responsibility of the landlord.

    The tenant would simply have the right for a full rent reduction for the period, and the option of terminating the lease as well.
     
  4. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    I had a client with a LL policy fire claim. The tenant faced costs associated with immediate need to move and finding another. The LL policy didnt address tenant costs but paid to compensate client for loss of rent etc. They don't pay the tenant.

    The tenant had prepaid rent for the month and it had to be repaid to tenant too. There was a issue with the PM fees which the insurer met. (The agent didn't refund his fees) So the rent loss under the LL policy effectively covered from the day of fire onwards. The LL insurer paid costs for a solicitor to attend tribunal when later tenant claimed for costs to be met for relocation. I recall if the tribunal had ordered it, the policy would have paid but if tribunal didn't make orders it didn't.

    Read the policy for cover and benefits.
     
  5. cadence

    cadence Member

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    Depends on the wording of the policy, whether storm is a covered event.
     
  6. Allgood

    Allgood Member

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    When I was at uni (vaguely remember that far back!) the unit we were living in was fire damaged and we couldn't live there for a period of time because it had no power etc.

    We took up the option of cancelling the lease but got no compensation, other than some measly centreline benefit for emergency accommodation which was about $40 per week. - It worked well for us TBH because we were considering breaking the lease as uni had finished. Don't tell anyone tho... we might become suspects, 15 years later! :rolleyes: