FIRE! Lessons Learned - House Catches Fire 4 Months Into Lease

[Fahad Rajput]

Sadly, one of my properties burned down last week.

 I rented a legal two family to a related group this past September. 

Tenants were great, never late on rent (even during COVID), no neighbors complained.

Then this happened last Thursday:

I received a phone call from the tenant at 10PM after a late day at work that the house is on fire - thought they were messing with me. Thankfully everyone was ok, but this will be a significant insurance claim.

Lessons Learned / Lessons Reinforced:

1. Always Require Renter's Insurance (I mentioned it to tenants but was laxed in enforcing it)

2. Install tamper-resistant smoke/CO alarms that are hard wired

3. Do NOT undervalue your build cost on the insurance policy to save a few dollars

4. Make sure you have a Landlord Policy for your rentals and not a homeowner policy.

Questions:

1. I was told my homeowners policy will not renew and will be very expensive because I need to get it from New York State. Any experience with this? Options or Alternatives?