Insurance Claim for commercial tenant acts?

Question

Hi, I am a landlord of a small mixed use property. My commercial tenant removed the protective steel gates without my permission. Replacing them would cost about $7500. Is this something I can file a claim for? Also, this tenant installed an unpermitted electrical panel. Same question, can I file a claim? I am about to start an eviction action but I am not sure how much money  these guys have even if I get a money judgment against them. Thanks

Les Jean-Pierre · Answer

Hi Jose, Thanks for the reply. I have their insurance policy information. Is it possible to file a claim directly with their carrier? And what are your thoughts about the electrical? Even if I have to pay the deductible for my insurance, it is worth it as the premium isn’t too high.

Thanks

Jose Linares · Answer

@Les Jean-Pierre Typically, there is coverage for unauthorized repairs under the "vandalism" peril of your landlord policy.  However, they do often look for "malicious intent" when determining coverage.

Is the $7,500 a hard bid for the cost to replace the protective steel gates?  I would recommend obtaining estimates for the replacement of the steel gates & electrical panel work required.  Once you have those estimates, determine if they will exceed your insurance deductible.  If the cost does substantially exceed your deductible and would warrant a claim, ask your agent what the typical premium surcharge would be for filing a claim under vandalism.

Should everything line up to file a claim and you do have coverage for those damages, the insurance carrier will issue payment to you.  They will then pursue the tenant to recover any settlement issued and, hopefully, your deductible.

I hope this information is helpful.  Feel free to PM me if you have any additional questions.