Tenant caused a house fire in my rental.

[Tyler Silk]

My tenant left some burners on and left the house. It caused a moderate fire to my home. They have liability insurance and I have landlord insurance. Hoping to get some advice on how to handle this. Sounds like my insurance will cover the house and rent while it is being rebuilt. Is there anything else I am entitled to from their liability insurance? What role does their liability insurance play in all this? 

[Denise Supplee]

Hello @Tyler Silk,

I am so sorry you’re dealing with this. It can be a bit nerve-wrecking. 
I have been in real estate for a very long time and a good deal of time spent in property management. Oddly, I have been on both sides of this fence. 

Generally, your landlord insurance is usually the primary policy that steps in first for the property damage and loss of rent. Their liability insurance generally comes into play because the fire was allegedly caused by the tenant’s negligence.

There is your deductible  to consider but sometimes your insurance company will try to recover it from the tenant’s liability carrier through subrogation. This may also include, any damages or costs not fully covered by your landlord policy.

I would not negotiate directly with the tenant’s insurer before talking through everything with your own carrier first. Your insurer will often handle a lot of that process behind the scenes.

DOCUMENT EVERYTHING!!! 
• photos/videos
• fire department report
• communication with the tenant
• contractor estimates
• lost rent records
• hotel or temporary expense issues if applicable

One thing to keep in mind: if the tenant’s liability limits are low, there may not be much additional recovery available beyond what your own policy covers. May also be worth a quick conversation with a local attorney or public adjuster if damages are significant, just to make sure nothing gets missed. 

I hope this all works out for you with as little stress as possible.