Flood in one of my Rental Properties

Allentown, Pennsylvania
Managing Your Property
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Flood in one of my Rental Properties

Paul Scavello
Member since 2020 · 13 posts · 2 votes

I recently had a flood in one of my rental properties caused by a broken pipe outside the building. Unfortunately, There was a lot of water damage, and I relocated the tenant to a hotel. I got started on the repairs, which was about nine days. I then gave the tenant the next month's rent for free. I just now received a message that the tenant is requesting for me to pay for some of her items that were damaged. I highlight on all my leases that the tenant should have renters insurance in case something like this happens. Did anyone experience this? I’m curious how this situation was handled.

Thank you

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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 683 posts · 259 votes
2y

I think you've done more than enough and contents are always the responsibility of the renter.  

I would require renters insurance and make it easy for them to purchase providing online options and suggestions to add to their car insurance, etc.

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  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 683 posts · 259 votes
    2y

    I think you've done more than enough and contents are always the responsibility of the renter.  

    I would require renters insurance and make it easy for them to purchase providing online options and suggestions to add to their car insurance, etc.

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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y
    Quote from @Paul Scavello:

    I recently had a flood in one of my rental properties caused by a broken pipe outside the building. Unfortunately, There was a lot of water damage, and I relocated the tenant to a hotel. I got started on the repairs, which was about nine days. I then gave the tenant the next month's rent for free. I just now received a message that the tenant is requesting for me to pay for some of her items that were damaged. I highlight on all my leases that the tenant should have renters insurance in case something like this happens. Did anyone experience this? I’m curious how this situation was handled.

    Thank you


     I would not cover any damage to personal belongings if you have a renter's insurance clause in your lease. That is exactly the purpose of rental insurance. We require all tenants to add us as "additional interest" on their policies, so we know when policies have been cancelled, but if a tenant chooses to violate the lease and not carry insurance they can eat the costs of their belongings if something happens. 

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  • Alyssa Wright
    Real Estate Agent · Pittsburgh, PA · Member since 2024 · 86 posts · 51 votes
    2y

    As other people have mentioned, you have already done more than a lot of landlords would do to support the tenant, not in a bad way! 100% have your tenant go through their renter's insurance as well as I would make sure the insurance company is notified that the repairs are already underway, they have received a rent discount, and you covered a placement for a hotel. 

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  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 490 votes
    2y
    Hi, you are correct! The tenants should submit a claim to renters insurance. You have already gone above and beyond. Good luck & happy investing!
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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Paul Scavello:

    No good deed goes unpunished.

    The break was not your fault and is probably costing you more than a few months worth of rent. You put the tenant up in a hotel for nine days and gave them another month of free rent. Despite losing thousands, the tenant wants you to take responsibility for his belongings because he failed to purchase renters insurance for $25 a month? 

    I wouldn't offer another dime and I would strongly consider getting rid of this tenant when their lease is up.

    You should consider requiring renters insurance and stop being so generous when things happen that are out of your control.

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 624 posts · 211 votes
    2y
    Quote from @Paul Scavello:

    I recently had a flood in one of my rental properties caused by a broken pipe outside the building. Unfortunately, There was a lot of water damage, and I relocated the tenant to a hotel. I got started on the repairs, which was about nine days. I then gave the tenant the next month's rent for free. I just now received a message that the tenant is requesting for me to pay for some of her items that were damaged. I highlight on all my leases that the tenant should have renters insurance in case something like this happens. Did anyone experience this? I’m curious how this situation was handled.

    Thank you

    It's unfortunate to hear about the flood in your rental property. Given that you've already provided the tenant with accommodation during repairs and even offered a rent-free month, it's reasonable to expect them to rely on their renters insurance for personal belongings damaged in the flood, as outlined in your lease agreement. However, each situation is unique, and it might be worth discussing the matter further with the tenant to understand their perspective and find a fair resolution.
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