{"id":95045,"date":"2019-12-14T05:00:44","date_gmt":"2019-12-14T12:00:44","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=95045"},"modified":"2023-03-20T10:50:22","modified_gmt":"2023-03-20T16:50:22","slug":"tenant-drives-living-room","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/tenant-drives-living-room","title":{"rendered":"What to Do When Your Tenant Drives Through the Living Room"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC8785032836&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n<p><span style=\"font-weight: 400;\">No landlord wants the dreaded midnight call about a maintenance emergency. But a leaking toilet is nothing compared to the phone call I once received about one of my renter\u2019s driving into the living room. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yup, that\u2019s right. My tenant\u2019s 16-year-old son had accidentally driven straight through the front of one of my investment properties into the living room of the single family home. &nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Luckily, no one was hurt, but significant damage was done to the structure of the building and a handful of the tenant\u2019s belongings. It was through this process that I learned a little more about the insurance claims process and how the right types of insurance will help you and your renters when accidents happen. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a look at how to handle a major tenant emergency and tenant-caused property damage to your investment.<\/span><\/p>\n<h2>3 Steps to Take After Tenant-Caused Property Damage<\/h2>\n<h3>Step #1: Talk to your tenants (as calmly as possible).<\/h3>\n<p><span style=\"font-weight: 400;\">When faced with major property damage that can put your investment at risk, it\u2019s understandable that your emotions could negatively affect a constructive conversation about what happened. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In my case, the 16-year-old driver was facing his landlord to explain how he accidentally drove into a building. I remember him being terrified that his accident would result in an eviction for his entire family. Thankfully, these had been responsible, rent-paying tenants, and that positive landlord-tenant history made this incident easier to manage. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I believe that it was truly an accident, and I had no reason to distrust this family or the driver.<\/span><br \/>\n<em><br \/>\n<strong>Related:<\/strong> <a href=\"\/renewsblog\/raise-rent-without-losing-tenants\" target=\"_blank\" rel=\"noopener noreferrer\">6 Tips for Raising the Rent Painlessly (Without Losing a Single Tenant!)<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Since I had a positive relationship with my tenants, we were able to effectively communicate about what happened and what steps we needed to take to fix the problem. We both needed to cooperate to repair the damage as quickly and cost effectively as possible.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-120401\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/12\/wrecked-car-front-end.jpg\" alt=\"Adult upset driver man in front of automobile crash car collision accident in city road\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/12\/wrecked-car-front-end.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/12\/wrecked-car-front-end-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>Step #2: Call your insurance provider.<\/h3>\n<p><span style=\"font-weight: 400;\">I initially assessed the damage as property damage and turned to my <\/span><a href=\"https:\/\/www.biggerpockets.com\/blog\/insurance-policies-for-landlords\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">landlord insurance policy<\/span><\/a><span style=\"font-weight: 400;\"> to find a remedy. It was during this call with my insurance agent that I was informed it would actually be the tenant\u2019s auto insurance that would handle the claim. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Auto insurance policies typically include <\/span><a href=\"https:\/\/www.dmv.org\/insurance\/bodily-injury-and-property-damage-liability-coverage.php\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">property damage liability insurance<\/span><\/a><span style=\"font-weight: 400;\">, which covers the cost of damage to someone else\u2019s property caused by the insurance carrier\u2019s car. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Property damage liability insurance takes effect when the vehicle is involved in an accident and found at least partially at fault for causing damage to another person&#8217;s property, which can include another car, house, fence, or light post.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was up to my tenant\u2019s auto insurance to cover the repair cost to fix the damage caused by the driver of the car that went through the living room. Auto property damage insurance will cover damage to another person\u2019s property caused by the insured vehicle but will not cover damage to the driver\u2019s own property.<\/span><\/p>\n<h3>Step #3: Contact your tenant\u2019s insurance provider.<\/h3>\n<p><span style=\"font-weight: 400;\">If a vehicle is involved in damaging your property, you need to collect the at fault driver\u2019s insurance information. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I was able to contact my tenant\u2019s auto insurance provider, and they agreed to reimburse me for the repair cost for the damages. I had this agreement with the insurance company before I contracted any repairs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Repairs included a new front door, a new living room window, new exterior and interior paint to the damaged area, new interior drywall, and a new front wall to the property. The repair costs totaled $2,869.50.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process was straight-forward and easy, and I had no issue getting reimbursed for the total cost to repair the damages.<\/span><br \/>\n<em><br \/>\n<strong>Related:<\/strong> <a href=\"\/renewsblog\/3-ways-good-tenants\/\" target=\"_blank\" rel=\"noopener noreferrer\">3 Steps to Choosing Quality Tenants for Your Rentals<\/a><\/em><\/p>\n<h2>Other Things to Consider<\/h2>\n<p><span style=\"font-weight: 400;\">I was fairly lucky in that the repairs to my damaged investment property came in relatively low and the tenant\u2019s auto insurance policy covered everything. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">An auto policy\u2019s property damage insurance will have a coverage limit, however, and if the repairs exceeded the coverage limit, I would have had to turn to my own insurance to help cover the repairs.<\/span><\/p>\n<h3>Review your insurance coverage<\/h3>\n<p><span style=\"font-weight: 400;\">Your homeowner&#8217;s insurance will likely pay for any and all additional damages to your home above and beyond the at-fault driver&#8217;s auto policy limits, but you need to make sure that \u201cvehicles\u201d are listed as <\/span><a href=\"https:\/\/www.thebalance.com\/claims-on-your-insurance-527120\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">covered damage-causing hazards<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-93188\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/10\/thrifty-deals.jpg\" alt=\"\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/10\/thrifty-deals.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/10\/thrifty-deals-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>Damaged tenant property<\/h3>\n<p><span style=\"font-weight: 400;\">Auto insurance property damage will cover damage to another person\u2019s property caused by the insured vehicle, but it will not cover damage to the driver\u2019s own property. This means that all the tenant\u2019s personal property that gets crushed or damaged by the vehicle that drives through the living room will not be replaced by the auto insurance (think TVs, computers, and furniture). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Renters insurance is the answer for <a href=\"https:\/\/www.letstalkpm.com\/blog\/Tell+Tenants+About+Renters+Insurance\/tab\/1088\" target=\"_blank\" rel=\"noopener noreferrer\">replacing your tenant\u2019s damaged<\/a><\/span><span style=\"font-weight: 400;\">&nbsp;<\/span><span style=\"font-weight: 400;\">property. Even if property damage is the fault of the tenant, renters insurance will cover the replacement costs. Your renters can often bundle auto insurance and renters insurance together. &nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To further protect your tenants, landlords and property managers can even require their tenants take out a renter&#8217;s insurance policy as a condition of the lease. This serves as one more layer of protection for your tenants and prevents landlord-tenant disputes when a tenant thinks a landlord\u2019s insurance policy should cover damaged items.<\/span><\/p>\n<h3>Where does the tenant live during major reconstruction?<\/h3>\n<p><span style=\"font-weight: 400;\">In my situation, only the living room was damaged and since the bedrooms and bathroom remained intact, the tenants were able to live at the property during the repair process. &nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the property had become uninhabitable due to the damage, the tenant would have looked to their auto insurance provider or renter&#8217;s insurance policy to cover the cost of alternative housing, like a hotel, while the property was getting repaired.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a property becomes uninhabitable due to some fault of the landlord, some states require the landlord to pay for alternative housing for the tenant during the repair process. Other states allows renters to break a lease without penalty if a property becomes uninhabitable.<\/span><\/p>\n<h2>Final Thoughts<\/h2>\n<p><span style=\"font-weight: 400;\">When accidents happen, an investor should be armed with the knowledge for how to problem solve and get the property in livable condition again, with as little out-of-pocket cost as possible. Insurance plays a major role in protecting your property, your tenants, and your rental business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of tenant caused damage, auto insurance, renter&#8217;s insurance, and landlord insurance could play a role in making the claims process as simple as possible for you.<\/span><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/real-estate-investment-calculator?utm_source=renewsblog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91220\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>What&#8217;s your best tenant damage story?<\/em><\/p>\n<p><strong>Share below!<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Yup, that\u2019s right. My tenant\u2019s 16-year-old son accidentally drove straight through the front of one of my rentals into the living room of the home. Here&#8217;s how we straightened it all out.<\/p>\n","protected":false},"author":132929,"featured_media":117007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-95045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/95045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/132929"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=95045"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/95045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/117007"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=95045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=95045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=95045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}