Check Your Insurance Coverage


New Forum Member
Property Damage Repair equals a Capital Gain?

family livid over AWOL tenant

of a south Ottawa rental property say damage that occurred during a
time the property was leased to a tenant from Saudi-Arabia has cost
them $70,000.

property, which is on San Remo Private off Riverside Drive, was
heavily damaged during the tenant's 2007 vacation when pipes burst
during a record-setting cold snap.

family recalls the disaster when they first walked inside.

can imagine it in front of me, it was a complete disaster," said
Salma Hefzy, who showed CBC News photos of a flooded basement and
extensive water damage in the walls and ceiling.

who owns the home with her son Mohamed Migahed, said their insurance
company wouldn't provide coverage.

because their policy clearly says the house must be checked when a
tenant is away, which they failed to do.

Saudi Embassy, who sponsored the tenant ` a Saudi doctor on a
student Visa ` connected him with the family in the winter of 2007.

the disaster, officials then made a non-legal guarantee to reimburse
the family if they sent a letter to the Saudi royal family requesting
money, which they did with the help of a lawyer.

during that process, the family said the tenant fled the country
before his lease expired and the embassy has since not returned their

estimated it cost $55,000 to fix the extensive damage. He also showed
CBC News what he considers a slap in the face: a $15,000 tax bill
from Revenue Canada, which considered the work a capital gain.

a few years of fighting, Migahed said he continues to push the
embassy to live up to their promise.

deserve the Saudi embassy to step in and assume responsibility for
this financially and, to be honest, [give] a real apology about all
this," he said.