.

Water appliance malfunction

How can a simple incident turn into a major concern? Fixtures and fittings attached to a residential unit are automatically insured under the village insurance as required under ss 109 and 110 of the Retirement Villages Act 1999.

Following various events which have happened to ARQRV members where damage has occurred to the members’ residential unit, the scheme operator / management of the retirement village has alleged was caused by the resident in which they relied on the relevant P I D clause to insist the resident pay the repair damage, can be quite a concern and lead to a distressing situation for the resident.

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 contractual documents (P I D and lease agreement) and the insurer refused to cover the loss. The residents were obliged to pay several thousand dollars out of their own pockets, to repair the damage.

ARQRV suggests that 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 which we understand is competitively priced and will cover the unique position in which residents of retirement villages are placed.