Loss of Rent

[Donald Paul]

Own a side by side duplex each with a private entrance. Had an extensive fire on Side A in mid January. Policy has loss of rent. The day after the fire we met with an independent claims adjuster assigned by our insurance company. Explained the tenants in Side B just moved out January 1 and we had the unit up for rent. He told me to send an email with rents. which I did.  Led us to believe we would receive reimbursement for both units.

On February 18, we received a check for $7500 for loss of rents. No explanation of what the $7500 covered but was told we would keep track and settle up at the end.

March 11, we received letter with our settlement today. Only providing us with 6 months of rent for Side A - fire side. When asked about Side B the adjuster replied “only pays rent for units that are occupied.”

Now Side B cannot be rented until repairs are done. . Door and frame were busted down by fireman. Attic insulation runs across both units and needs to be pulled out and replaced. Furnace and ducts need to be cleaned, the unit needs to be repainted due to light smoke damage (we had just repainted). This settlement includes $30,000 in repairs for Side B - for non fire unit.

We can’t rent Side B, so I am out 2 months rent as of today, and at least another 2 months of lost rent until the unit may possibly be done. Then I will have to find a tenant that would be willing to live with the construction next door (dumpster in driveway, trucks, etc)

Here is how the policy reads, Anyone have any thoughts or suggestions on how we should proceed?" Monthly rent is $2000 for this unit.