Financial Responsibility in an Apartment Fire

9/4/2018 (Permalink)

Whether a small apartment fire or a blazing inferno happens at your rental property in Bonsall, CA, you are worried. First, you are concerned about the safety of your renters. Once you know they have securely evacuated the building another big question begins to loom. What is your financial responsibility towards repairing the fire damage?

Expenses Covered by the Landlord

Although you never expect a fire to occur, prepare ahead of time with the proper insurance coverage. When you renew your commercial property insurance, read through and understand the policy specifics including your deductible. Landlords are typically responsible for the following after an apartment fire:

• Property insurance covers structures such as walls, floors, ceilings, roofing, insulation and related materials. Electrical, plumbing and similar systems are included in this as well.
• The landlord must return the apartment to a safe, livable condition before the tenants can reoccupy the space.
• In a timely manner, the landlord needs to arrange for a fire restoration specialist to begin work on the fire damage.

Expenses Covered by the Renter

Encourage or require your tenants to purchase renter’s insurance to reduce their personal expenditures in the case of a fire. The financial responsibility of the following falls to the renter’s wallet:

• Personal property such as clothing and furniture are typically covered by renter’s insurance.
• Temporary housing is also usually covered by renter’s insurance in the scenario that the apartment is not in livable condition during restoration.

Expenses Dependent on Fault

When a fire is due to negligent behavior of the landlord or tenant, the financial obligations may be more complicated to understand. In either case, insurance companies may seek reimbursement from the faulty person’s insurance. Parties may also seek personal compensation in small claims court.

As a landlord in Bonsall, CA, an apartment fire is devastating to both you and your renters. Obtain the proper insurance and understand your financial responsibilities to ease the stress involved in the fire damage restoration process.