loss of rent due to strata incident

[beachgurl]

In a previous thread, I mentioned that there was a sewer pipe burst in the building of one of my IPs. Apparently there was a rock in the pipe and sewage gushed into a number of the first floor apartments. A plumber had to break the pipe to release the water some hours later. by then, my tenant's had fled to a hotel and the flooring and bathrooms of my unit were damaged.

The strata claim that the loss of rent is not their problem. The reason is that the carpet was destroyed in the 'event' and that is why the tenants left. As carpet is a content and not an item that falls under strata, they have no responsibility.

My landlord insurer has just come back and said that they will not cover the loss of rent as the reason for the damage to the unit and loss of tenant is due to the sewage burst, being a strata related incident.

By the time the strata manager helped me with sorting the claim and having the strata and contents items replaced/repaired, 8 weeks had passed. At $720 per week rent that's a lot of rent to have lost.

Is that just tough bikkies for me that I've lost rent and there is nothing I can do to seek some form of compensation from the strata? Or is there an avenue I can look into once the gatekeeper to the insurer has told me my case is closed?

 

[jkat]

I don't know the answer - but you might be able to contact the financial services ombudsman and also look at the insurance paperwork on what they do and don't cover. Sometimes they get it wrong and you need to know the policy to be able to fight it.

 

[brettc]

My landlord insurer has just come back and said that they will not cover the loss of rent as the reason for the damage to the unit and loss of tenant is due to the sewage burst, being a strata related incident.

Who is the landlord insurer?

 

[beachgurl]

The insurer is aami

 

[handyandy]

I am surprised that the strata's insurance covered them for a blocked sewer pipe.

 

[jclegg]

Wow, unbelievable. And quite a common occurrence I should think. I would fight back with the strata..they might claim that the reason the tenants left was because the carpet was damaged but it was only as a consequence of the sewage leak for goodness sake!!
Maybe you could get a stat dec from the tenants saying that the sewage was the reason they left, not the carpet.
I would definitely take it as far as you can.

 

[Oscar]

beachgurl - you will need to fight this. keep all correspondence in writing. I had a similar issue some years ago when the body corporate was playing hard ball.

I wrote a spectacular letter, in a legalese format, not quite threatening, but very strong factual language that left no ambiguity that I would vigorously pursue my entitlements in court unless the matter was settled amicably and to my satisfaction, the terms of which I spelt out very clearly. In no time I had the body corporate work with the insurer to pay out a multi thousand dollar settlement in lost rent.

I once had a lawyer as a tenant who tried to sue me. I kept her 9 page letter to me and used it as a template to fight my own battles. Works REALLY well. PM me if you would like a copy!

 

[brettc]

My landlord insurer has just come back and said that they will not cover the loss of rent as the reason for the damage to the unit and loss of tenant is due to the sewage burst, being a strata related incident.

It is likely that you would get no joy from the Body Corporate policy (strata building) but I would certainly think you should be getting something from the landlord insurer. There may be something in an AAMI policy that gives them an out, some of the direct major insurer policies are not (in my opinion) comprehensive enough, but without looking at it closely I couldn't say for sure.

Is AAMI paying for the damage to your unit? If they are I'm not sure why they wouldn't be paying the loss of rent.

In saying that, 8 weeks seems like a very long period to have the property made habitable again, or is there more to the rent loss than that?

 

[beachgurl]

AAMI paid on the replacement of the carpet and the curtains (they approved the curtains yesterday). The flooring went in after 6 weeks. The strata manager was being difficult in getting a claim sorted (she insisted that strata would not cover anything) yet I needed a letter from strata confirming this before AAMI would process the contents claim. Took 4 weeks before I could get the contents claim started, so lots of wasted time for no good reason.

Thanks for your reply Brett. I might do some light reading of the AAMI policy.

 

[s0805]

surely this is strata issue and they should cover the loss of rent....not sure if any other landlord insurance will cover the rent in this scenario.....the root cause here is sewer pipe burst which strata is responsible for...my 2 cents....

good luck....

 

[chilliblue]

Just remember to document all your correspondence and have the replies in writing.