Terri Scheer - Caution From My Claim

[DaveM]

I am putting in my first ever landlord insurance claim, I am insured with Terri Scheer. My claim for costs, damage to internals, rubbish removal, rental arrears and locks etc comes to about 12k.

So far it looks like they are not going to accept much of the claim except for the rental arrears and tribunal costs, thanks to a handy (for them) exclusion on their policy.

Specifically, for deliberate or malicious damage,
"This does not include:
Tenant carelessness, neglect, unhygienic living habits or poor housekeeping"

As a result, damage to my contents from a tenant who trashed the carpets and internals, is not covered as it was caused by tenant neglect. Which is specifically why you take out cover of this type.

So caution to policy holders with Landlord Preferred, as it appears that a wide variety of contents damage can be excluded away due to the above.

I will keep things updated with my claims progress... and with a bunch of policy renewals looming, I expect EBM will be getting my business.

 

[Aaron_C]

How much $$ did that policy end up excluding from the 12k?

 

[DaveM]

Looking to get about $3k out of the 12k. Cleaning and rubbish removal is $3000 on it own of which I get $1280 bond towards. House is so bad that trades wont do any work inside it till its been cleaned/rubbish removed... carpet company wont touch the carpets to remove them.

As Dazz would say, its a mugs game!

 

[Aaron_C]

So a 75% reduction? Ouch.

 

[pully]

does not sound very good. how long were the rent arrears? were any of the issues picked up during inspections, or did the tenants simply turn rogue?

 

[thatbum]

In my experience you can challenge a lot of the decisions that insurers make to try and shortchange you.

Is anything in the claim arguable?

 

[DaveM]

Tenant had been in 9 months. First inspection at 3 months was all good, nice and tidy. 6 months later at next inspection its trashed. 90 day NTV with no reason to get them out issued as soon as the inspection was over. Tenant stopped paying rent, 14 day NTV's for arrears lodged, VCAT and warrant of possession obtained.

All done by the book.

 

[thatbum]

I thought Terri Scheer covered accidental damage?

 

[pully]

yes it can seem a mugs game when things like this happen. makes shares look attractive.
hope you can challenge the decision or just walk to the next insurer but will they be any better?
good luck.

 

[DaveM]

They do, but per the PDS, accidental damage only covers a single event eg spillage of bottle of wine or smashinig a glass cooktop, not anything which accumulates over time such as internal contents destruction.

Accidental damage also excludes any damage deemed to be deliberate or malicious, or that that arises from neglect or wear and tear.

 

[HD_ACE]

once you have the outcome and all costings, it would be good if Brett would go through it all and give us his honest opinion on how ebm would have assesed and awarded for the same situation as per their pds.

Then it should put the terri vs ebm argument to rest.

cheers

 

[The Fence]

once you have the outcome and all costings, it would be good if Brett would go through it all and give us his honest opinion on how ebm would have assesed and awarded for the same situation as per their pds.

Then it should put the terri vs ebm argument to rest.

cheers

No need for Brett, we have just lodged a very similar claim with EBM and I can already tell you that cleanup costs are not covered. You can deduct them from the bond only. What's left over goes towards the claim.

We are also claiming against damage to carpets from a cat clawing at them.

We shall see what eventuates and make an honest appraisal of EBM.

 

[NedKelly]

So far it looks like they are not going to accept much of the claim except for the rental arrears and tribunal costs, thanks to a handy (for them) exclusion on their policy.

Specifically, for deliberate or malicious damage,
"This does not include:
Tenant carelessness, neglect, unhygienic living habits or poor housekeeping"

As a result, damage to my contents from a tenant who trashed the carpets and internals, is not covered as it was caused by tenant neglect. Which is specifically why you take out cover of this type.

Since most policies also exclude wear and tear I am beginning to wonder what I am actually paying insurance for.

 

[Terry_w]

Specifically, for deliberate or malicious damage,
"This does not include:
Tenant carelessness, neglect, unhygienic living habits or poor housekeeping"

As a result, damage to my contents from a tenant who trashed the carpets and internals, is not covered as it was caused by tenant neglect. Which is specifically why you take out cover of this type.

Sounds like what they did was malicious to me.

carelessness etc implies no intention to cause damage.
Malice is when they have an intention of ill-will or desire to injur or cause damage.

 

[SuiCid3]

I'm assuming you went over the PDS for EBM?
Did they have anything similar along these lines?

 

[DEC]

Sounds like what they did was malicious to me.

carelessness etc implies no intention to cause damage.
Malice is when they have an intention of ill-will or desire to injur or cause damage.

I have tried to make claims over the last 10 years and everything is put down as fair wear and tear or untidy housekeeping.
I was told unless it had been reported to the police and they said it was malicious (holes punched in walls, fixtures torn out, windows smashed) that it will be classed as fair wear and tear or untidy housekeeping and the claim will be rejected.

I too wonder why I keep paying every year because the very best I get is a few weeks rent back.

 

[S.T]

this is a bit of a game changer! Appreciate you bringing it to our attention Dave. Have you had anyone else go over the PDS, maybe a solicitor? Might be worth it if it means you're potentially out of pocket 8k...

 

[NedKelly]

I can't believe someone can do $8K worth of damage by bad housekeeping, especially when for three months the property was kept in good condition, clean and tidy.

 

[D.T.]

Sorta defeats the purpose of having insurance. All insurances are like that do, especially health insurance. Add up the premiums paid and I bet you could have fix things up yourself for that

 

[wylie]

Why not make a police report?