Who is responsible for damages from a fire in a rental unit? My tenant admitted he accidently caused a fire in his kitchen which damaged some of the cabinets and flooring. The tenant claims that my insurance company is responsible to cover the damages and make repairs. Isn’t the tenant liable for the damage?
As a business matter, the cause of the fire will usually determine liability for damages. If the fire was a result of faulty equipment or a structural element essential to the property, you would generally be considered the liable party and responsible for restoring the property to habitable condition. If the fire was determined to be as a result of tenant negligence, even though unintentional, the tenant will generally be held liable for the damages.
It is the insured’s responsibility to immediately notify his insurance company as soon as possible about a claim or a probable claim. Failure to do so in a timely manner could jeopardize coverage of a claim. Once a claim has been filed, it will then be up to your insurance company and the tenant’s insurance company to determine which of them is liable for payment of claims. If your tenant does not have renters insurance, the tenant may be held liable by your insurer for any amounts related to the damages paid to you by your insurer.