INSURANCE – Water Appliance Malfunction

WATER APPLIANCE MALFUNCTION 

How can a simple incident turn into a major concern?

The ARQRV recommend members check with their household contents insurer to ensure that fixtures and fittings, which are owned by the retirement village, are covered.

Following various events which have happened recently to members in Queensland retirement villages, where damage has occurred to a members’ residential unit, which the scheme operator / management of the retirement village has alleged was caused by the resident and the scheme operator /management has relied on the relevant P I D clause to insist that the resident pay to repair such damage.

One example occurred when an appliance owned by a resident malfunctioned and water escaped resulting in damage to carpets and other fittings, owned by the village, within their own and neighbouring units. The village operator asked the resident to pay for the repairs in terms of their P I D lease agreement and the insurer refused to cover the loss. The residents were forced to pay several thousand dollars out of their own pockets, to repair the damage.

ARQRV suggests that all members check with their own insurance company to ensure that fixtures, which are not owned by them but for which they may be responsible, are covered under their policy, and if not, change their policy to include such cover or change their insurer to one which will offer the cover required.

Should members need to find an insurance cover that meets and satisfies this requirement, the ARQRV’s insurance broker, JLT, have sourced a policy from Q B E which we understand is competitively priced and will cover the unique position in which residents of retirement villages are placed.

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