Hi there,
I have a landlord policy with CGU. Property is in Qld.
Last mth my tenant done a runner & naturally there were a few damages. Many Holes on walls, carpet badly stained in main bedroom & lounge (does not look like it can be clean), dog poos all over rooms, rumpus & deck, yard is a total mess, rent is in arrears (naturally). So there were some reassurances when I know I have insurance to cover me. Claims were lodged on my behalf by RE & this is what came back.
Firstly, 7 holes were identified. CGU claim assessor told me that under normal circumstance they would consider these holes were not punctured at the same time hence an excess ($400 for malicious damage claim & $50 claim excess )have to apply to each hole (that's 7 x $450 = $3150). Quote to fixed was $1400. So she decided to only apply 1 excess of $450. I got $950.
Secondly, stains on carpet. She said as they were the direct caused by the cleanliness of tenants they won't be able to cover me AND due to wear & tear of carpet & age of carpet (more than 10 yrs old) policy state cannot replace old for new. But she will try to contribute something. Quote came back to replace carpet for the 2 rooms at $1400. She then took out TWO excess ($450 x 2 = $900) then said the most she could contribute towards carpet replacement is $500.
Thirdly, rent default capped at max $3000 so less excess I got $2550 BUT I asked her due to the circumstance where the whole place is scatter with poos & under my opinion cannot be rent out until cleanned, carpet replaced & holes patch up. So while i get the place ready for new tenants, I would not be getting any rental income. Tenant still under leased until end of october. I asked her whether I can claim the remainder period "under loss of rent". Her explanation was by the look of it all someone still can move in with prospect that I will fix the whole things up. So she's saying someone will move in with holes on the walls, poos stains on carpet so can't help me "under loss of rent". She explained that this clause is more for when kitchen is not operational, whole place is flooded/fire damaged & basically no one can move in & occupy the premises at all.
Just in case you guys wonder about bond money...It was used to do cleanning mostly as he also left 1/2 of his junks (including 2 cars used for parts)
My thoughts all along were it's a rental & tenant done a runner, how can one prove whether what happens when. I know that some of you are with CGU so just want to know did this happens to you & what were the outcomes ? Is this normal practice in the insurance industry ? My RE suggested i change to Teri scheer ? (not sure i spell it right)
thanks
bubbles
I have a landlord policy with CGU. Property is in Qld.
Last mth my tenant done a runner & naturally there were a few damages. Many Holes on walls, carpet badly stained in main bedroom & lounge (does not look like it can be clean), dog poos all over rooms, rumpus & deck, yard is a total mess, rent is in arrears (naturally). So there were some reassurances when I know I have insurance to cover me. Claims were lodged on my behalf by RE & this is what came back.
Firstly, 7 holes were identified. CGU claim assessor told me that under normal circumstance they would consider these holes were not punctured at the same time hence an excess ($400 for malicious damage claim & $50 claim excess )have to apply to each hole (that's 7 x $450 = $3150). Quote to fixed was $1400. So she decided to only apply 1 excess of $450. I got $950.
Secondly, stains on carpet. She said as they were the direct caused by the cleanliness of tenants they won't be able to cover me AND due to wear & tear of carpet & age of carpet (more than 10 yrs old) policy state cannot replace old for new. But she will try to contribute something. Quote came back to replace carpet for the 2 rooms at $1400. She then took out TWO excess ($450 x 2 = $900) then said the most she could contribute towards carpet replacement is $500.
Thirdly, rent default capped at max $3000 so less excess I got $2550 BUT I asked her due to the circumstance where the whole place is scatter with poos & under my opinion cannot be rent out until cleanned, carpet replaced & holes patch up. So while i get the place ready for new tenants, I would not be getting any rental income. Tenant still under leased until end of october. I asked her whether I can claim the remainder period "under loss of rent". Her explanation was by the look of it all someone still can move in with prospect that I will fix the whole things up. So she's saying someone will move in with holes on the walls, poos stains on carpet so can't help me "under loss of rent". She explained that this clause is more for when kitchen is not operational, whole place is flooded/fire damaged & basically no one can move in & occupy the premises at all.
Just in case you guys wonder about bond money...It was used to do cleanning mostly as he also left 1/2 of his junks (including 2 cars used for parts)
My thoughts all along were it's a rental & tenant done a runner, how can one prove whether what happens when. I know that some of you are with CGU so just want to know did this happens to you & what were the outcomes ? Is this normal practice in the insurance industry ? My RE suggested i change to Teri scheer ? (not sure i spell it right)
thanks
bubbles