A Car Drove in to my Rental House

13 Replies

I don't know how to start. hum, A drunk driver drove their SUV in to the living room/dinning room of my rental unit. The damage is about $45,000-60,000 I got the house for $20,200 and put $15,000 into the house. My insurance maxes out at $70,000 for the dwelling and 7K for lost income. They will also pay up to 7K for upgrades do to Ordinances/law meaning the cost to bring stuff up to code. We are still exploring the extent the driver's insurance. My delectable is $1,000 we have a HELOC for $30,000 on the house, 25K is took out.

This is my first insurance loss on a house.  What do we look out for?  What are the options? What should I do next? 

@Wilson Lee cars driving into homes is more common than you would expect. Sorry you have to deal with this. Your best bet is going after the drunk drivers insurance. On top of damage to the property, there is probably going to be loss of rents and reimbursement for you time.

Looking at the picture I don't see $60K worth of damage. Have you gotten actual quotes or had multiple contractors look at it?

When necessary insurance can be a win. I would see if they will pay me a cash settlement, fix up the place myself, and sell for maximum return or just sell it as it is.  

Insurance pays 70K (hypothetically), fix it for 10-15K...... sell. 

Problems can be opportunities.

@Wilson Lee sorry to hear it.

 As far as the claim goes, if the driver had auto insurance, the auto insurance will pay for all the costs.  With the extent of the damage, it is possible the auto policy will run out.

Once the auto insurance runs out, the claim will go against your property policy.  Your insurance company will then sue the driver to try and recoup the claim payout.

Best to put your carrier on notice, if you haven't already.  Good luck with it.

@Joe Splitrock  The foundation is cracked, Some pluming was knocked loose. both the walls it hit where load bearing. Floor joist are cracked, That wall also had electrical in it. Not that electrical is open, All electrical in the house must be upgraded to code.  Which means ripping open all the drywall. Debris damaged the kitchen and all of the appliances.

The claims adjuster has been to the house.  they said it can take 3 weeks before they have results back.

Originally posted by @Wilson Lee :

@Joe Splitrock  The foundation is cracked, Some pluming was knocked loose. both the walls it hit where load bearing. Floor joist are cracked, That wall also had electrical in it. Not that electrical is open, All electrical in the house must be upgraded to code.  Which means ripping open all the drywall. Debris damaged the kitchen and all of the appliances.

The claims adjuster has been to the house.  they said it can take 3 weeks before they have results back.

 It may have hit load bearing walls, doesn't appear to have collapsed, so get the walls braced up immediately and get plywood on the outside to prevent weather or unwanted visitors. I am not sure you need to open all your walls to upgrade electrical, but it depends on access under floor or in attic too. Three weeks for results from the adjuster is ridiculous. I had a fire and had the numbers within a couple days. Get contractors to look at it and give you an estimate too. Call a damage restoration company. They specialize in working with insurance companies and doing work quickly.

As far as car insurance limits, there are SUV on the road that cost more than $70K so it seems most insurance should cover this amount. I am not an expert on this, so I could be wrong.

Who was driving? Ricky Bobby? :)

This is a blessing in disguise! I had a similar thing happen when my heavily intoxicated next door neighbor drove up my driveway and right into my garage .

The insurance(mine and his) paid us to fix the house, my truck, my Harley (I was pissed about that one getting hurt) and I had enough left over to pay off  bills....! I really made out on that one!

And no, I didn't/don't hold a grudge.... stuff happens! :)

@Wilson Lee did you already file with the drivers auto insurance?  If not, I'd suggest doing that asap.

Obviously your tenants need to find a new place. You could collect the claim and sell.

We had a truck drive into our house years ago. Took out two cars, back room of the house, and all ours skis. Report it to your insurance who goes after thier insurance. The insurance should cover you. Some people reccommend getting a public adjuster to help. In our case took them a year to settle but i was younger, busier, and not as well informed as today. I eventually got the cost of house repairs, 4 brand new pairs of skis and the cars including the hard top on the jeep. The original adjuster of our claim who didnt want to pay for the jeep top and skis was fired too! The repair alone was more then the house cost. They even paid for repair of gigantic boxwoods he took out but i had to get estimates for everything. This wasnt a rental though. The main coverage should be thier liability.

Hire a public adjuster. It won’t cost you anything out of pocket and will be worth every penny in the end. I would not talk to anyone before have a public adjuster on my side. Good luck!

State minimum Property Damage on auto insurance is $25,000, in AL. Same in SD.

Given the amount of coverage you say you have on the property, I have to assume you have an actual cash value policy. Or an underinsured replacement cost policy.

Be prepared to pay your deductible and about 20-30% of the claim as actual cash value means you cannot recover depreciation. Or underinsured means a significant cut to the payout.

Obviously I don’t know the property or the policy, but that would be my advice on preparations.

Who had the right of way,  the house or the car?

Originally posted by @Derek Lacy :

State minimum Property Damage on auto insurance is $25,000, in AL. Same in SD.

Given the amount of coverage you say you have on the property, I have to assume you have an actual cash value policy. Or an underinsured replacement cost policy.

Be prepared to pay your deductible and about 20-30% of the claim as actual cash value means you cannot recover depreciation. Or underinsured means a significant cut to the payout.

Obviously I don’t know the property or the policy, but that would be my advice on preparations.

my police was replacement cost to current equivalent material. $77,000 worth. 

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