Short-term rental damage claim

Lena asks:
(updated on Friday, May 22nd 2015)

My tenant’s child has accidentally broken a large window, they have asked me to repair it through insurance. I don't have landlord insurance and my property is not listed with my insurance company as a rental because the tenants are only in there for a short period. Do I pay for the broken or window or do they? Or can I claim on my standard house insurance?

Our Experts Answer:

Your question raises a couple of matters. Firstly, there has been a recent case under the Property Law Act ("Holler vs Osaki") which prevents a landlord from seeking recovery of costs from their tenant where he/she has accidentally damaged the landlord’s property. This means you may not be able to claim costs for the broken window back from your tenant. Secondly, insurers always need to know the occupancy type as this can increase the chance of damage to the home, so will affect the premium they charge and/or the excess. For example, rentals/holiday homes are generally perceived as a higher risk to insurers than owner occupied homes. Therefore attract higher premiums and excesses. Since you haven’t declared to your insurer that your home is rented – albeit for a short term – they may decline your claim for non-disclosure of a material fact. However, given it’s a short-term rental (and assuming it’s normally owner occupied and not rented), hopefully they may look kindly on your claim or apply the terms they would have if they had known that the property was tenanted.

Most Read

Unity First Home Buyer special 4.09
SBS FirstHome Combo 4.19
ICBC 4.49
Kainga Ora 4.59
Co-operative Bank - First Home Special 4.59
AIA - Go Home Loans 4.65
ANZ Special 4.65
ASB Bank 4.65
SBS Bank Special 4.69
TSB Special 4.69
Co-operative Bank - Owner Occ 4.69
China Construction Bank 4.95
Kainga Ora 4.95
ICBC 4.99
Nelson Building Society 5.09
SBS Bank Special 5.19
ASB Bank 5.25
TSB Special 5.25
AIA - Go Home Loans 5.25
Co-operative Bank - Owner Occ 5.29
ANZ Special 5.29
Kiwibank Special 5.29
BNZ - Std 5.49
ICBC 5.65
Kainga Ora 5.69
Co-operative Bank - Owner Occ 5.79
SBS Bank Special 5.79
AIA - Go Home Loans 5.89
ASB Bank 5.89
TSB Special 5.99
Westpac Special 5.99
Kiwibank Special 5.99
China Construction Bank 5.99
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
ICBC 5.39
Kiwibank - Offset 5.75
Kiwibank Special 5.75
Kiwibank 5.75
Unity Standard 5.79