Who is Responsible for Insurance Claims?

8/7/2019 (Permalink)

Rental properties can endure a tremendous amount of water damage during a flood. It may not happen often in Abilene but when a flood hits the property you are renting to tenants, questions may surface about who is responsible for what damage. While the lease may have an outline of what is covered by both the tenant and landlord, there can sometimes be legal questions associated with damage resulting in leaky pipes or broken sewer lines. To alleviate some of the frustration that can occur, property owners often request the tenants obtain and maintain renter’s insurance.

Flood insurance is not typically included in a standard property policy. Nor is it standard in renter’s insurance coverage. The insurance can typically be purchased as a separate policy, but most require a waiting period of 30 days before coverage begins.

Landlords are typically considered responsible for insurance to the property. This property protection often includes:

• Structural damage protection
• Appliances replacement
• Restoration to the structure by qualified specialists

Tenants are generally responsible for insurance that covers their personal possessions. If flood insurance is covered in the policy, the renter’s coverage can also include:

• Paid temporary relocation during unlivable home flooding
• Normal living expenses until the building can be occupied
• Replacement of damaged personal items

Unusual Circumstances

Under normal circumstances, landlords are not responsible for damage to their tenant’s property or their tenant’s possessions; however, this is not always the case. If the property owner is responsible for the damage through neglect or irresponsibility, the tenant may have a legal case against the landlord for damages incurred.

Knowing your responsibility as a property owner before beginning the recovery process after a flood can help you provide the best service for your tenants and prevent any legal battles. Since every water damage situation may have its own variations and problems, when in doubt about your responsibilities consider contacting your insurance agent, attorney, or accountant about what is covered by renter’s insurance in Abilene.