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Landlord is owner of top floor unit, which occupies the whole of the top floor. Home warranty insurance covers the remedial building work (as a result of water penetration but not yet commenced), and such work will result in the partial removal of the roof to the dining/lounge room area. No estimate of time for the work has yet been provided, but it could be two or three months. The remedial builder is to determine whether the unit is uninhabitable. Home warranty insurance policy provides for alternative accommodation, removal and storage costs. The insurer has expressed the view that loss of rent is not covered by the policy. If it is determined that the unit is not uninhabitable, then the tenant would be entitled to a reduction in rental.
Home Building Regulation 2004, Clause 58(1)(k)(ix) provides that the policy MAY exclude a claim for loss of rent, loss of enjoyment, loss of business opportunity, inconvenience and distress, BUT the policy contains no such exclusion clause.
There is agreement that the tenant is not entitled to both free accommodation and relief from paying the rent.
Rita C