Article Score0

I have Allstate insurance and have asked them a couple of times, with two people giving me different answers.

I own a rental property out of state. I have a landlord policy for the property. Last night there was a fire caused by one of the kids playing with a lighter. The fire department declared the house uninhabitable and gave them a voucher to stay at a hotel for 3 days.

My tenant called me today explaining her son was playing with a lighter, started the mattress on fire, and he tried to put it out. He couldn’t so he went to get his mom, she tried to put it out but it was past that point so they left the house and called the fire department.

They are section 8 tenants and I just had my annual inspection in July 2010. It passed without any major issues. Section 8 called me today stating they have to cancel the contract due to the house not being liveable.

What are the chances my insurance will cover the damage? I know each policy is different, but I would think fire under any circumstance is covered.

1 Thought on Does a landlord policy on a property cover a fire caused by a tenant?
  1. Reply
    Glenn S
    July 24, 2011 at 4:28 am

    You are covered. I had a similar experience several years ago and my insurance carrier at the time, State Farm, paid for all the damage (including demolition and clean-up) and also the “loss of rents” while the house was being rebuilt.

    What is interesting is that the tenant and boyfriend got into a fight and he beat her up and sent her to the hospital. When she returned to the house the fire engines were there because the guy started the fire it on purpose. The boyfriend went to prison for 5 years for arson.

    For me, it was a great thing. The insurance company totally rebuilt the house. They turned a older home into a brand new one. I was able to increase the rent several hundred dollars a month.

    About the only issue that you might face….did you you have “code upgrade” in your policy.

    Example: If your property before it burned might have had a 100 amp electrical panel and met the building code when it was built. Today the city might require you to have 120 amp panel. Without the “code upgrade” rider (which costs more) the insurance company will make you pay the difference between the 100 and the 120 amp upgrade. The city will require you upgrade everything in the house to meet the current code.

    Leave a reply

    Register New Account
    Reset Password