Liable for damage to our rental

Question from Tatiana updated on 24th December 2013:

We crashed into our landlord's garage door. Our insurance company won't pay for the damage but my landlord's insurance company will pay for part of the repairs. The landlord has asked us to pay for the other part, but without showing us his insurance company's evaluation. Should we pay for it without checking the evaluation? Can the insurance company also charge us for the repair fees?

Our expert Diane Nelson responded:

On the information you have supplied, I suggest you go back to your insurance company and ask why they won’t cover. Your car insurance or contents insurance should give you legal liability cover in this instance.  However, in the event they don’t, yes you should always check out costs that you are liable for.  The landlord's insurance company can, and more than likely will, want reimbursement of the costs they have paid for the landlord.

Diane Nelson has over 14 years experience as a property manager in the Northland region. She now owns the REAL Landlord Insurance NZ Ltd brokerage and for over six years has specialised in the Landlord Preferred Policy,for investment owners who have their properties professionally managed. Diane also runs property management consultancy business Passionate about Property Management.

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