Hi All
I am looking for some advice – not sure what direction to take as I'm still fairly new to IPs.
One of my units has been flooded quite extensively and I suspect this at the fault of the tenant but I cannot prove so.
The agent called the plumber to check for leaks and pressured tested pipes and there was no issue (this took 3 days to perform/monitor). A carpet cleaner was called in to extract water out of the carpet, dry it and steam clean it. The cost of this damage is 5 weeks rent ($1,400). No structural damage was caused other than leaks through the adjoining unit wall which has dried.
Also to note, the tennant did not report the problem – the adjoining unit did. From my inspection with my father (who is a tradesman), we suspect the tennant left the washing machine outlet out of the sink.
What would you do?
1. The agent has suggested claiming insurance but I’m not sure if it’s worth it (worried about my permiums going up)
2. Claim insurance, get the tennant to pay the excess.
3. Confront the tennant with the bills
4. Just absorb the cost?I would suggest just going through your insurance company. At the end of the day they are in the business of insuring against accidents, and will not absorb costs if they don't have to (ie: will chase the tenant if it is their fault). The sooner you let the insurance company know, the better, as they will be able to get an assessor to check everything and make sure all your problems are gone. It is also your responsibility to report any damages to them, regardless of if you claim or not, if there is hidden damage that gets worse in the future they may refuse a claim, if they know about it they can decide whether to investigate, and if there is further damage later it will be on them to fix it, as you reported this incident.
Just make sure to let them know that you suspect it was the tenants fault and they can then decide whether they want to absorb the cost or chase the tenant. If they chase the tenant you will pay no excess, receive no premium penalty, and go on happy with your $1400 in your pocket. If they find it is no ones fault, they can ensure all damage has been fully repaired, charge you the excess, and your premiums may rise slightly (though no where near $1400, and I would suspect not even $140).
This is just my opinion though, as you have asked for, so if others have a different opinion I would like to learn from it also.
I have to agree completely with aussieguy2000 – this is why your insurance policy is there. In VIC all my tenants have a clause stating that if they accidentally cause damage then they will have to pay the insurance excess, that clause is there for situations just like this one.
Let your insurance agency handle it, they are the professionals and they will likely be able to find the best solution for you.
I am concerned though, why wasn't it reported by your tenants? Were they away? and why did it take 3 days for leak tests!!!????
Thanks for the responses guys. Really appreciated.
I never thought about reporting the incident regardless of claim. I will get my agent on the claim.
Sez: The plumber pressured tested pipes over 3 days (sorry not took 3 days) to see if the leaks got worse over night. The non-reporting of the tennant leads me to suspect the tennants were at fault and tried to cover up the situation.
Hmm, yes, that would often point a guilty finger at the tenant, not reporting when their unit is full of water! This is one of those times you wish you were a fly on the wall….with a tape recorder!
I'm sure your insurance agency and PM will be able to sort it all out for you but let us know how you go!
an accident is an accident. But yes i would be miffed that they didn't respect the property and report it. I would get them out when their lease expires
One other thing to remember is that whilst damage caused by a leaking tap is the responsibility of the owner, if it is determined that the extent of the damage was due to a long term leak and not something over night, again this is the tenants fault for not reporting it.
If it were their house, they would have it fixed straight away, so why not report it? Failing to report a problem that gets worse IS tenant abuse and IS their fault (however proving they knew about it is another issue – again for the insurance company to decide, because if the tenant disputes it and it goes to court it will be insurer v tenant and not you).
This sounds very familiar. One of my associates had a tenant who liked to leave the plug in the sink Some Feng Shui thing, she then went on holidays, the older taps blew due to pressure but as the plug was in the sink, the property was flooded and neighbour contacted my associate.
Was the tenants belongings damaged and are they claiming for any of those items? If not then there is your positive upside as well.
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