Tenants' contents damage

[Squiddly]

I'm sure something similar to this must have been dealt with already, but I can't find an answer.

I rent out a house via a Letting Agency. Recently a pipe unexpectedly burst in the garage. It was repaired within two days.

The tenants claim that the water has done considerable damage to their belongings stored in the garage and they want compensation for this plus two nights in a hotel (the house was without hot water and heating for two nights).

Are they entitled to compensation?

[Grampa]

Most tenancy agreement have a clause stating tenants must have their own contents insurance what does yours state?

[Squiddly]

Many thanks for your reply. Very kind of you. Unfortunately I can find no mention at all in the Tenancy Agreement regarding contents insurance.

[Richlist]

Are they entitled to compensation?

No absolutely no 'entitlement' whatsoever.

Burst pipe = act of God = nobody's fault/ one of those things and something they should have insured for.

You cannnot insure their stuff.

They are entitled to exactly the same as an owner occupier would be in the same situation......ie nowt.

NOW if you want to offer a small token for the inconvenience......thats entirely up to you.

[Squiddly]

Many thanks for your reply. What a useful find this forum is! I hope I might be of help to someone in the future.

Generally I try to be kind, attentive and generous towards tenants (and after fifteen years of renting my house out this is the first time I've had a problem) however these tenants are being very unreasonable. They have listed an unbelievable amount of goods that they want compensation for as well as demanding £250 per night for hotel accommodation. The Letting Agent also informed me that she was very upset by the state they are keeping the house in, when she visited.

I suppose bad tenants were bound to come along eventually.

Thanks once again for your kind help.

[Mortitia]

I disagree that 'burst pipe is act of God'. It could be lack of maintenance, however make sure there is a clause in your next AST telling the tenants that personal belongings are not insured by the landlord and he accepts no liability for them.

I would issue a Section 21 to remove them just for trying it on let alone the poor condition the property was seen in at inspection.

[Grampa]

If it was their own house and they weren't insured it would be the same and their own fault for not insuring.

You have to be careful with these type of demanding tenants. if you give in once to a unreasonable demand you will get a bucket load.

Make sure you have a better contract in place next time because if the one you are using doesn't have the normal basics such as details about insurance what else is missing????

[Squiddly]

Definitely some good advice there. Thanks so much.

[Chestnut]

House 2 days without hot water and heating? If nothing in contract about 'hotel accommodation' I would perhaps offer 2 days rent as gesture for inconvenience. Act of God or not - burst pipes are not fun for occupants - I know.

Have you claimed on your buildings insurance for repair costs? I would expect consequences of burst pipes to be covered to some degree, with clauses referring to alternative accommodation and contents damage etc. Insurers will want to assess why burst occurred - e.g. was it severe frost?

Contents insurance is normally responsibility of tenants and should be stated so in contract. Their insurers would require valuation inventory of each and every item damaged or lost and claim would depend whether or not insured New for Old etc.

I don't think how bad, demanding or untidy the tenants are is relevant, unless proved that their actions caused the burst.

[Squiddly]

Two days' rent would be fine, but they're demanding a lot more. I didn't claim on insurance as the repair costs were fairly low. I'm not sure of the reason for the burst pipe, but I imagine weather conditions.

Anyway I'll let you know the outcome of their claims as soon as I know it myself, in the hope it may be useful to someone else.

[Harry Fisher]

Is it your fault they were storing things in the garage? Do they have a receipt from the hotel?

[Chestnut]

Good points H F.

One should not part with any money without full justification of claim supported by cause of damage, valuation of each item damaged or lost and receipts for each and every replacement, consequential temporary accommodation, travelling, meals, etc. Exactly same as insurance loss adjuster would require in detail for their own auditors, before authorising payments.

"I'll let you know outcome of claims......" ??? I would hope letting agent is not committing landlord to any payments without landlord's prior approval based on evidence as listed above.

[Squiddly]

Well, I still don't know what's happening. i live and work abroad, so am relying quite a lot on the letting agent, who doesn't seem to know what the legal position is (!). She has informed me that she has spoken to "Environmental Health" (who the tenants called on the morning of the burst pipe) and she "thinks" the tenants are not entitled to any compensation. Today she informed me that the tenants are now refusing to pay the rent. She has a meeting with them tomorrow afternoon.

She seems totally (and somewhat unexpectedly) out of her depth to me. I think when this mess is over I need to change both tenants and letting agent.

[Richlist]

The most important thing a landlord can do is pick their tenants very, very carefully. The next important thing is to pick your agents very, very carefully.

So, in your shoes I'd first :-

1. Want to know the details of the burst pipe ie where it burst, exactly etc. Until you know those details you cannot determine any liability. Find out the details before proceeding any further.

2. Repaired within two days sounds quick & efficient to me.

3. You cannot insure your tenants belongings and if they weren't insured its not necessarily your responsibility to compensate them.