One tenant in Australia found herself in this exact situation. She had to endure months of negotiations with her insurer and landlord to get compensation for her mould-damaged contents. The case eventually ended up with the Australian Financial Complaints Authority (AFCA), which ruled that the insurer must pay for her total loss claim.
But what can tenants do to avoid this kind of ordeal and ensure that they get the compensation they deserve for mould-damaged contents?
Document the Damage
As soon as you notice mould growing in your home, take photos or videos of the affected areas and items. Be sure to capture the extent of the damage and any other relevant details, such as the date and time of discovery.
If the mould is causing health issues, you should also see a doctor and document any medical treatments or diagnosis.
Report to the Landlord
Notify your landlord or property manager immediately of the mould damage. You should always communicate using written correspondence like text message, emails or letters, and keep copies for your records. Your landlord has a legal obligation to keep the property in a safe and habitable state, including addressing mould problems.
They may also be required by law to provide a reasonable solution or compensation for any damage caused by the mould.
Claim from Your Insurance
If you have insurance coverage, file a claim as soon as practical, providing photographic evidence of the damage as well as copies of correspondence with your landlord. If your insurer offers to settle for a lower amount or disputes your total loss claim, you can engage the services of an independent insurance assessor to provide a more accurate assessment of the extent of the damage.
AFCA Common Issues With Mould Claims
Renters facing mould damage issues in the rental property is common in Australia. According to the AFCA, the most common issues with mould claims are disputes over:
- Responsibility for the damage, i.e. whether it was caused by the tenant’s actions or the landlord’s negligence.
- Extent of the damage, i.e. whether the damage is a total loss, what items are restorable, and the value of the lost or irreparable items.
- Insurance coverage, i.e. whether the policy covers mould damage or its extent.
- Remediation, i.e. the steps necessary to remove the mould, and who pays for it.
Tenants Must Advocate for Themselves
The case mentioned above is a cautionary tale for tenants that insurers or landlords will not always acknowledge the extent of mould damage or compensate them fairly. In such situations, tenants must be prepared to advocate for themselves and seek the support of bodies like AFCA when necessary to get the compensation they deserve.
In conclusion, tenants need to take the necessary precautions to prevent mould damage in their rental homes, and document any damage to ensure compensation. It is always best to get a policy that covers mould, but if it does not, speak to your landlord, and if all else fails, don't hesitate to seek the support of the AFCA.
Published: Wednesday 22nd March, 2023
Last updated: Wednesday 22nd March, 2023
