Property damage - tenant pays or Insurance claim?

[kathryn d]

Whilst car insurance policies go up, because you're deemed to be a "less safe" driver once you've had a claim, my understanding is that home, contents, and landlord policies don't generally work the same way. eg If you've had a claim as a result of a storm, that doesn't mean that *you* are a riskier prospect than you were before the claim. We had a $250K claim on our home and contents insurance last year (after a flood) and our premiums - with the same insurer - went down about 20% this year. Premiums can go up if the whole city, for example, had a huge claim, and the whole city is perceived as riskier, but an individual policy holder can't be deemed to be risker for having been affected by a random event.

There are some specific types of claim which may cause their perception of your risk to rise, eg if you have a claim for a dog bite, they may deem your dog as a higher risk and your policy could rise, but a fire by a tenant would generally be viewed as "one of those things", IMHO, and I doubt your rates will rise.

Pedro61 has given me permission to post this, and I quote:

"FIY My insurance renewal came in the oter day and surprise ! The premium has increased. I called them to ask why and they said that it was because of this recent claim, and I had now lost my "No-claim bonus". So Mr Perp's claim that "I don't believe that previous claims affect the amount of your policy." is complete bollocks."
End quote.

So there you go folks.
You can just keep on having your premiums increase every year..and have nobody to blame but yourself.

 

[kathryn d]

...which has nothing to do with the question as to whether a tenant who accidentally causes a fire in your kitchen can resort to their own insurance to cover said damage.

As I said previously, there is a big difference between whether a tenant is legally liable for said damage and whether they can obtain insurance for it.

As I am sure your insurance friend has told you, the liability cover under the tenant's contents cover won't come to the party and they can't insure the building itself.

It's a good thing, nobody ever told the winners at the tribunals they would lose..others they would be out a lot of money.

 

[geoffw]

I understand that Pedro's claim was close to $1k. His excess was $500. So he's getting $500 back on insurance.

For this he loses his no claim bonus for the next five years.

He cannot say "no thanks. I'll pay". Once he has asked the question to the insurance company he is deemed to have claimed.

So tenant stuffs up. Landlord has to pay excess and loses no claim for five years.

Ah yes. Pedro was nice and agreed to forgo the last rent rise because the tenant was good.

 

[Perp]

this forum is in place so that we can discuss these things in a positive and civilised manner without attacking the poster. If we cant raise issues without being attacked by somebody with a different opinion whats the bloody point of having the facility. Why don't you follow the posting rules on your own sustainable living forum. If you want to start getting personal attack Elf Girl, go on another forum. There's no room for it here.

Quite right!

Pedro61 has given me permission to post this, and I quote:

"FIY My insurance renewal came in the oter day and surprise ! The premium has increased. I called them to ask why and they said that it was because of this recent claim, and I had now lost my "No-claim bonus". So Mr Perp's claim that "I don't believe that previous claims affect the amount of your policy." is complete bollocks."

Oh, man, do I feel embarrassed now, that really showed me. *rolleyes* LMAO

Given that several insurers, including landlord insurance specialist Terri Scheer, don't put up premiums after claims, this seems a bit OTT.

On a positive note, thanks is due to kathryn_d for finding cases which reinforce the position of the majority, and conclusively resolve the issue in our favour.