'Robodebt' for insurance
Landlords pay insurance premiums to cover repairs and replacements in rented homes, but some insurance companies are sending renters the bill for damage they didn't cause without the landlord even knowing – sometimes years after a claim has been paid.
A CHOICE investigation has caught out major insurance companies hounding renters to pay debts they haven’t proved that they owe. In one case, GIO insurance demanded payment for over $300,000 for fire damage, without proving that the person who rented was responsible, two and a half years after the fire.
CHOICE supporters Lauren and Luke (pictured above) reached out to share their experience after we first launched our investigation. They have been living this nightmare ever since their landlord’s insurance company GIO sent them a letter demanding $78,000 for accidental property damage caused by a kitchen fire, giving them only 14 days to pay. When the story hit the news last week, GIO dropped the claim. Unfortunately, their story is just the tip of the iceberg.
Does this practice sound fair to you? It’s clear that some of the biggest insurance companies are banking on scaring renters into paying up, rather than accepting that insurers are responsible for paying landlord insurance claims. Join the campaign to put a stop to this dodgy practice now.