Burst pipe in rental property.

1 Reply

Quick background, my father passed and the property is in the Estate now. We are in MD and are having record lows. Long story short a pipe burst causing flooding in a store front downstairs. Our insurance is coving the building damage, but who would cover the tenant merchandise damage? The tenant said he does not have insurance because this same issue happened in 2011 and 2015, but I am unaware of it, and cannot verify his claims. So he has been operating his business without insurance for the past few years. He is threatening legal action, and I was wondering if anyone has experienced this before and how it may have turned out? Thanks in advance.

@Otho Keller

I am not a legal expert by any means but I know most landlord insurance don't cover the tenant's property. It is upon the tenant to acquire renter's insurance or in the case of this tenant, a business insurance that protects his goods when its damaged. 

Check the original lease clause. If the lease stated for the tenant to acquire renters insurance and the landlord is not responsible for any damages, then you are in the clear. 

However, remember I am not a legal expert and only speaking from experience. I strongly encourage you to speak to an attorney about this so you can be prepared for anything this tenant throws at you. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here