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49B: When tenant liable
or “Tenants can be held responsible for damage they or their guests cause on purpose or through careless actions.”
You could also call this:

“ The landlord gets the money if the tenant accidentally damages the property, not the insurance company. ”

If you cause damage to the place you’re renting by being careless, your landlord gets the benefit of any money you have to pay for that damage, not the insurance company. This means a few things:

The insurance company can’t claim any money from you for the damage you caused. They can’t use legal tricks or agreements to try and get that money either.

If your landlord gets money from you because of the damage, or if they have the right to get money from you, the insurance company can’t use this to reduce how much they pay out on the insurance claim.

These rules apply to the specific situations described in section 49B(2) or (6) of this law. This section talks about when you might have to pay for damage you cause by being careless.

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Next up: 49D: Unlawful acts related to liability

or “It's not okay for landlords to make you pay or do more than you should for damage”
Next

Part 2 Tenancy agreements
Responsibility for damage

49CLandlord, not insurer, to benefit from tenant liability for careless damage

  1. An insurer of the premises against destruction or damage has no right or claim in relation to a tenant’s liability under section 49B(2) or (6), including no right of equitable or contractual subrogation and no right arising out of an assignment by the insured.

  2. If an insured receives or is entitled to receive any money or benefit arising out of a tenant’s liability under section 49B(2) or (6), an insurer of the premises may not take that money or benefit into account in calculating the amount payable under the insurance.

Notes
  • Section 49C: inserted, on , by section 8 of the Residential Tenancies Amendment Act 2019 (2019 No 37).