Insurance claim on rental single family house

7 Replies

Hi,

I did some upgrades (flooring, bathroom, paint) to my rental property and put it for RENT in February. 

A pipe in the attic burst and it caused damaged to the ceiling of garage and drywalls around it (before tenant moved in)

I will be filling a claim to my home owners insurance company, and want to make sure I don't hit any roadblocks. 

So, the house was vacant when this happened and my insurance is written as non-owner occupied (landlord's) insurance.

Will insurance company deny the claim because no one was living in the house (it was listed on several websites for rent)?

Also, by since insurance company will make a payment, I am assuming my insurance for next year will go up (can someone advice on how many % it will go up by?).

I have three other rental units, will insurance on those units go up as well?

Thanks!

@Neel Shah - Pipe bursts are typically covered. Your policy could say otherwise however. It all depends on the language in the contract. Have you contacted your agent yet?

Depends on how long the property was vacant and what your specific policy says about that.  Some policies state that your insurance can be cancelled (or a claim denied) if the property was vacant for more than 30-60 days. 

my mistake - it is pipe joint disconnect (not burst).

I am just worried that since the house is on the market to be rented (therefore vacant), the insurance company will try to deny it.. Am I over thinking?

If you have a landlord policy, and you're in compliance as far as how long its been vacant, you should be OK.  If it was vacant for months you may have a problem.   When you buy a house and have a lengthy rehab you need builders risk or vacant property insurance.  Hopefully you had a discussion with your insurance agent and were upfront about exactly what was going on with the house.  If so, you should be OK.

I would not expect much, if any, increase in the cost of your insurance.

Originally posted by @Neel Shah :

my mistake - it is pipe joint disconnect (not burst).

I am just worried that since the house is on the market to be rented (therefore vacant), the insurance company will try to deny it.. Am I over thinking?

 Neel, the claims adjuster will ask for the current lease as part of the process to establish if it was vacant or not.

Also, not sure if a disconnect will trigger coverage.  Depends on the exact circumstances.

Good luck with it.

Thanks all for the responses.

Attached is the picture of pipe (looks like it is disconnected from joint due to freezing(?) or something else(?), and conditions of Causes of Property Loss from my insurance.  Which Cause does this damage fit into?  

I am hoping insurance would cover it...

Hey @Neel Shah the cause of loss with either fall under accidental discharge or overflow of water or freezing pipe. The claims adjuster will have the ultimate say as to what it falls under. Most landlord policies cover a home for at least 60days but you will have to prove that it has not been empty for longer than that. If you had a signed lease ready to execute and the tenants cannot move in because of this claim then you may also trigger your loss of use coverage and be able to collect rent for the time it takes to fix the damage.

Good luck

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