Insurance question

[TMNT]

What happens or what should I do in this situation?


Need to insure a place which is severely run down, we are talking missing walls, damaged frames, holes in walls, externally house is fine

Replacement cost say 150k, purchase price virtually land value only

If the remaing place burns down or falls over or vandalised and ive insured it for replacement cost is this considered fraud?

If a vandal comes in and decides to knock a few external walls will the insurance company really just repair the walls in question?

And finally what's everyone's experience with say major vandalism half way during a Reno, lets assume its a 20 k Reno to add internal walls, kitchen new bathroom etc and say you'.re almost finished or half way finished and it goes bak to square one? The final product is unknown so it's hard to restore back to original condition

 

[big_head]

I can only suggest you ring the insurance company and tell them everything. See what they say.

 

[Ausprop]

you'll need a very good broker to sort this one out - it is possible

 

[TMNT]

just called up one insurance company that I use, and they said due to preexisting damage they wont insure it
I only said there were a few holes in the walls, However, I have insured houses with holes in it and even multiple walls missing! that being said I didnt do a claim, nor did I disclose either as I was intending to fix it upon settlement straight away

I wonder if legally I have to disclose any preexisting damage?

I mean if it were to burn down or vandals got through it, it would be hard to say which vandals did which damage

 

[marg4000]

I wonder if legally I have to disclose any preexisting damage?

Yes, in every insurance contract you have to give full disclosure. To do otherwise will invalidate your insurance policy and you may be subject to fraud charges.

Dishonesty has a way of catching up with people.
Marg

 

[TMNT]

Yes, in every insurance contract you have to give full disclosure. To do otherwise will invalidate your insurance policy and you may be subject to fraud charges.

Dishonesty has a way of catching up with people.
Marg

thats teh thing, its not dishonest if you arent made aware that you are supposed to even disclose it

my first couple of properties I guessed at how old the property was, sometimes I was right, sometimes I was 20 years off,

say you buy a home not knowing it had termites, you insure it, move in and then find out its termite ridden down the track,

ive insured properties that I thought was on a concrete slab but ended up on stumps


so what are you supposed to disclose, that the toilet has a leak, the blinds in bedroom A dont close properly, there is a nest of rats living in the roof, there is a scratch in teh paint!

same thing with cars, you can have an agreed value on a car, but it doesnt have to reflect anything, eg I have a car insured for $26k, which I bought for 26k, its now 2 years old, if I write the car off, then I get paid $26k but I pay a higher premium for it, its probably worth about $20k, if im going to write off a car, I want a new one instead of trawling through the car yards looking for a 2nd hand one