Damage after Eviction

Atlanta, Georgia
General Landlording & Rental Properties
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Damage after Eviction

Ray Melendez
Rental Property Investor · West Palm Beach, FL · Member since 2015 · 8 posts · 1 vote

I'm looking for feedback.

We have a quadplex in the Atlanta area where one of the units had gone through an eviction process that took forever (about 3 years). The tenant came with the purchase of the property. The property is managed through a local PM that eventually got the tenant out. After the eviction, we discovered that the tenant had done quite a bit of damage to the unit. The unit also appears to have had a leak from the AC handler that had been going on for a while and damaged the foundation/structural, floor, cabinets, walls, etc.

So far, the quote we have received for the repairs was about $75K. We are looking to get a few more quotes.

We submitted a claim through the insurance and are waiting to have the adjuster visit, but from the conversation with him, he mentioned that if the AC water damage and the eviction had been going on for a while, they would not cover.

I'm curious to see how others have handled damages of this size. Do you use another type of insurance for this situation? We wanted to see how others had handled situations like this.

Any feedback would be appreciated.

Thanks

Ray

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  • Aaron Shoemaker
    Real Estate Agent · Atlanta, GA · Member since 2019 · 45 posts · 16 votes
    3y

    Hey @Ray Melendez, sorry to hear that!

    I have been denied for a longterm water leak- even though it was behind a wall and no one could tell until the pipe really burst. Not knowing your policy, I'd bet they will try to deny you.

    Advice- talk to a public adjuster ASAP. Get their help in navigating this- they charge a fee (seems like 10-15%) but that's better than 100% of $0. DM me if you want a recommendation.

    If this is going to do anything, do it quick! Recommend holding the insurance company's adjuster off until you've at least talked to a public adjuster.

    I don't know of any insurance that would better cover this in the future.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Ray Melendez:

    insurance typically won't pay for damages from a long-term tenant unless they are malicious, like a Tenant spray-painting every wall on their way out the door.

    Three years to evict? In Georgia? I'm pretty sure it should have only taken a couple months. Time to find a new PM.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Insurance companies will not cover intentional damage done by tenants.  You are on the hook to pay for that.  Hopefully your PM didn't return any of the deposit.

    0Reply
  • Ray Melendez
    OP
    Rental Property Investor · West Palm Beach, FL · Member since 2015 · 8 posts · 1 vote
    3y

    Thanks Nathan 

    Yeah when Covid kicked in a few years ago, cases had piled up. We eventually got some help from the state to cover the first 2 years of rent. But then had to start the eviction again after the assistance kicked in.

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  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    3y

    3 years is an absurd amount of time! I would verify that PM made the effort to follow up with inspection and post notices during that time.

    If insurance won't cover it, I would bill the tenants for it. It'll stay on record when they attempt to rent somewhere else.

    Best of luck to you!

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  • Ray Melendez
    OP
    Rental Property Investor · West Palm Beach, FL · Member since 2015 · 8 posts · 1 vote
    3y

    I did forget to mention that we did switch PMs in the middle of the 3 years.

    0Reply
  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    Ray,

    Only the adjuster can determine if some or all of the loss is covered.  If you question their determination, the first one to ask for help is your agent.  If you do not have an agent, the agent is exclusive to that company, or if they are not helpful, you should contact an independent adjuster to assist you.  Note that most independent adjusters bill based on a percentage of the claim recovered.  Another place you may get help is from your State Insurance dept.  Lastly, you should contact an Attorney that specializes in this area.  

    Without knowing your coverage I can't make a guess on the coverage.  I suspect that the odds are better on the Vandalism loss by the tenant rather than the water damage.  

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