Inspections missed

Question from Maureen updated on 18th June 2015:

I am wondering what redress I would have in the case of a property manager who has not done enough inspections for an insurance claim? I stated the insurance company in the rental authority application as asked (one that requires three monthly inspections) and in the frequency of inspections stated 'as normal'. This is a reputable company and some property managers do three monthly inspections, my property manager only did six monthly inspections regardless of the insurance company requirements. I employed a property manager for expertise - bad mistake!

Our expert Myles Noble responded:

Under the Insurance Law Reform Act an insurer can only decline the claim should the breach of the warranty (i.e. quarterly inspections) be causative to your loss. Should this be the case and your insurer has declined your claim then my thoughts are that you should seek recovery from the property manager's firm given that they have breached the conditions of the property management contract.

Myles Noble is head of claims and earthquake response for Crombie Lockwood. He also holds various advisory board positions in the insurance industry.

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