Liability for tenants' fire loss?

Maree asks:
(updated on Tuesday, August 27th 2013)

My rental property burnt down and I would like to know if I am liable for the tenants' property that was damaged due to the fire starting by a faulty power point?

Our Experts Answer:

The answer to this is fairly straight forward depending on a couple of points. Firstly if you were completely unaware of the 'faulty' power point then there is no liability. Secondly if the tenant had reported the 'faulty' power point and nothing was done to undertake repairs then (if the tenants had insured their belongings) you could be liable for negligence. The tenants' insurer could seek recovery from the landlord.

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