Extensive damage to property - filing a claim?

Question

Hi,

Just wondering if anyone has dealt with this or has some idea as to how to deal with this.  Earlier today, I received a frantic call from my HOA representative saying there's been extensive damage to my rental property (and followed it up with photos of the roof partially caved in, including into at least one tenant's unit).  For reference, this is a 4plex with 2 stories on top and 2 stories on bottom.  I've been trying to reach out to my property manager but have not been able to get a hold of them so far (despite their 24/7 maintenance hotline).  I also sent an email to my insurance provider but I am not expecting a response today given it's a Sunday.

Has anyone dealt with this or have some idea as to how to deal with managing this?  I've never really gone through something like this.  I was thinking, if I can get a handyman out there asap just to do some clean up and maybe put a tarp over the roof 'holes' if possible, and with the next step, coordinating my insurance adjustor and my property manager to evaluate this....and go from there?  Or is there something I'm not thinking of?  At least one unit looks unlivable (i.e., debris in the unit, drywall everywhere, etc), I'm not sure about the others... I'm not sure if the tenants have rental policies, but I believe our property manager recommends them.

For reference, the damage looks pretty bad (i.e., its as if all the drywall/ ceiling material has fallen through with debris everywhere and only the support beams visible when standing below and looking up). You can tell from the outside that it's bad.

Account Closed · Answer

What was the cause of the damage? Sorry if I missed it in your post. The cause of the damage and the terms of your policy will cover rather or not the insurance company will cover it.

Andrew Wicklow · Answer

@Shawn Ab

As an insurance agent I can tell you to stabilize the property but be sure to document with invoices and photos.  Technically it’s your duty to preserver the property so no further damage happens.

Ultimately it depends on the cause if the collapse to determine who pays for it.  If it was just deferred maintenance and things just were not maintained, that’s not covered.  If it was an “event” tat caused the collapse, more than likely it is covered depending on the coverage you opted for.

Call your insurance ace guy first thing as he may check messages later and you’ll need them to file a claim sooner to get a jump on it.

Let me know if you have further questions and best of luck with the repairs.

Andrew

Tom Harkins · Answer

@Shawn Ab “I also sent an email to my insurance provider but I am not expecting a response today given it's a Sunday.”

Fires happen on Sundays. Have you filed a claim yet? Do that ASAP if not. Your insurance can recommend a company to do the board up and early mitigation work. There is no need to come out of pocket for anything. In the meantime, read your policy cover to cover - learn the details of your coverage and your responsibilities in the process forward. Best of luck.

James Mc Ree · Answer

Try calling your local fire or police departments. They may be able to give you some information assuming they worked the fire.

Mike McCarthy · Answer

@Shawn Ab focus on the urgent things first. Tarp the roof and make sure the tenants have somewhere to stay. I wouldn’t start getting them hotel rooms or anything yet, but make sure they are safe. Also, find out whether they should be instructed to stay out of the property or if it’s safe to enter (structural issues?)

Then start the process with your insurance company and HOA.

Good luck!

Shawn Ab · Answer

From the photos, the cause appears to have been some sort of fire?  It is hard to tell however, I am just making that guess based on the 'blackened/ soot covered' nature of the insulation (that fell into the unit from the roof).  Other than that, it looks as if the roof ceiling has collapsed (but the supporting beams/ etc seem unscathed).  There were no recent storms/ etc in the area and the only thing that I've heard is that it was 'something electrical' (the tenants apparently told the groundskeeper who told the HOA - who called me).  I don't have the tenants information, I am looking for that currently.  So far, I've left VMs/ emails with my property managers' emergency number, individuals from the property manager, and the insurance sales representative for my policy.  I was able to speak with a handyman who I've worked with in the past and he's going to go there to take pictures/ videos, get his POV/ assessment, and put tarps over the roof holes to the best of his ability.

@Bjorn Ahlblad, Account Closed - I'm appreciative of the advice/ thoughts.  Will continue to update as I go through this.

Tammy Mason · Answer

I'm following this thread. I hope everything goes well @Shawn Ab, let us know if your insurance covered the damage.

Tommy Brown · Answer

Hi Shawn,

I am sorry to hear about the damage to your rental property!

As noted by others, the most important thing to do as soon as possible is to prevent further damages from occurring. Keep invoices from this damage mitigation for potential reimbursement from insurance carriers. You should also file a claim with your insurance carrier as well as with the HOA's master policy. If you have a professional relationship with your broker, I would suggest emailing and calling them for their review of options, deductibles, and CC&R review to help with your specific claim.

The CC&R's for the association will outline who is responsible for insuring different aspects of the building. and it is likely you will have the HOA's insurer, your insurer, and any tenant's insurer involved in the investigation process.

I wish you the best, and please reach out with any questions!

Regards,

Tommy Brown

Wendell Fong · Answer

Ok, here goes.

I cannot guarantee this is correct, but I will give you the process we use in BC, Canada.  The process is like a decision tree that causes different actions depending on the amount of damage and if it is an insurable/not insurable.  From your description, I will just describe the most likely events.

So you need to get your HOA bylaws and HOA insurance.  Your HOA should carry insurance for this and you need to determine if the damage goes above the HOA's deductible. If it is, then the HOA manager should be sending out a restoration company to mitigate the damage. /Tarp/etc.

1) the HOA manager should send the HOA's insurance adjuster to confirm the damage was caused by an insurable event.

2) They should also send a restoration company to do an estimate of the repair cost to confirm it is above the deductible.

If It is over deductible and it is an insurable event, then the HOA's insurance will get involved. If you do not have a copy of it, ask your property manager for a copy of the HOA insurance and the HOA bylaws.   The HOA will usually be responsible for the full repairs Except that they will send you a bill for the deductible amount.  HOA deductible could be anywhere from 5-50k.

3) You should review your own personal Condo insurance to make sure you have HOA deductible insurance to cover that deductible amount.   Your personal insurance should cover the HOA's deductible and you in turn will only be responsible for your personal insurance deductible amount.

Let us know what the damage estimate is, your HOA deductible, and if the adjuster confirms it is an insurable event.

Sam Shueh · Answer

I will be out there with wrench, tools, mops to see first hand what you can do as emergency repair.

Extensive damage to property - filing a claim?

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