Tenant refusing Insurance Claim work

[Wesley Jensen]

Hey everyone! I have a strange situation and am curious what everyone’s thoughts are. I had a cold water line pex fitting fail in the wall at my duplex. Water came in through the cabinets for 10-15 minutes and it destroyed the microwave and the controller on the boiler. My tenant cleaned all the water up but it’s unclear any residual damage in the wall or under the floor etc. I have filed an insurance claim and they are sending a mitigation company out who says they will assess and may (if needed) pull up the floor, cabinets, drywall, whatever needs to be done. I told my tenant the plan and he said he thinks it’s dry enough and liveable and does not want the work done and himself potentially displaced. He said he will reach out to the state for his legal tenant rights in this situation. I asked the insurance company what happens to him if it’s unlivable and they said they will reimburse me for missed rent, but if he is displaced it’s on his renters insurance policy to pay for hotel or whatever he decides. If work needs to be done to mitigate long term damage, can he say no to it being done? He is on a month to month lease so potentially I could give him notice and wait until the end of March. Any/all thoughts are welcome. Thanks for the help!

[Bob Stevens]

Quote from @Wesley Jensen:

Hey everyone! I have a strange situation and am curious what everyone’s thoughts are. I had a cold water line pex fitting fail in the wall at my duplex. Water came in through the cabinets for 10-15 minutes and it destroyed the microwave and the controller on the boiler. My tenant cleaned all the water up but it’s unclear any residual damage in the wall or under the floor etc. I have filed an insurance claim and they are sending a mitigation company out who says they will assess and may (if needed) pull up the floor, cabinets, drywall, whatever needs to be done. I told my tenant the plan and he said he thinks it’s dry enough and liveable and does not want the work done and himself potentially displaced. He said he will reach out to the state for his legal tenant rights in this situation. I asked the insurance company what happens to him if it’s unlivable and they said they will reimburse me for missed rent, but if he is displaced it’s on his renters insurance policy to pay for hotel or whatever he decides. If work needs to be done to mitigate long term damage, can he say no to it being done? He is on a month to month lease so potentially I could give him notice and wait until the end of March. Any/all thoughts are welcome. Thanks for the help!

 It was a leak, fix it replace the sheetrock and damage other items and move on Why would you file and insurance claim for such a small issue? Now your rats are going up .  Tenant is correct, why are you making such a big deal out of this? 

[Theresa Harris]

I wouldn't trust your tenant to know if it is okay or not.  Get someone in to make sure it is okay and you won't have a mold problem down the road.  Cleaning up the water is one thing, but it is the water you can't see that could be the problem.  Fans help to dry it out, but it really depends on the amount of damage.

Your tenant doesn't want to have to move out (which is fair enough, but it is not his property and long term damage is your problem).  If it is livable, give him the option of moving out for a few weeks or a reduced rent while the repairs are being done (depending on how long the repairs will take).

[Jonathan Pflueger]

@Wesley Jensen

First off, making a claim on your homeowners insurance does not automatically mean it will be raised. I have made numerous claims, sometimes on the same property and my rates have never been raised. While your rate could be raised for numerous reasons raised, claiming it will be automatically raised because you made a claim is just not true. Do not be afraid of using your insurance. Only use it when you truly need it, but do not let fear stop you from utilizing a tool you pay for.

Second, this decision is not the tenants. You are responsible to make sure your rental is clean, safe, and livable - not the tenants. If you feel there is damage, you have a duty to inspect. Your tenants concern are real but they do not trump ensuring your investment and their living situation is up to snuff.

There should be a clause in your lease that allow you access to the home within a certain amount of notification time. Utilize this clause, get your insurance in there, and figure out the real extent of the damage. Your tenant has no say in this.

[Marco Padilla]

Quote from @Wesley Jensen:

Hey everyone! I have a strange situation and am curious what everyone’s thoughts are. I had a cold water line pex fitting fail in the wall at my duplex. Water came in through the cabinets for 10-15 minutes and it destroyed the microwave and the controller on the boiler. My tenant cleaned all the water up but it’s unclear any residual damage in the wall or under the floor etc. I have filed an insurance claim and they are sending a mitigation company out who says they will assess and may (if needed) pull up the floor, cabinets, drywall, whatever needs to be done. I told my tenant the plan and he said he thinks it’s dry enough and liveable and does not want the work done and himself potentially displaced. He said he will reach out to the state for his legal tenant rights in this situation. I asked the insurance company what happens to him if it’s unlivable and they said they will reimburse me for missed rent, but if he is displaced it’s on his renters insurance policy to pay for hotel or whatever he decides. If work needs to be done to mitigate long term damage, can he say no to it being done? He is on a month to month lease so potentially I could give him notice and wait until the end of March. Any/all thoughts are welcome. Thanks for the help!

Hi there Wesley,

It's certainly a unique situation you're facing. When
it comes to determining whether to remove the tenant temporarily or
proceed with the necessary repairs, there are a few factors to consider.

First,
it's important to assess the extent of the damage caused by the water
leak. While the tenant believes it's dry enough and livable, it's
crucial to have a professional mitigation company evaluate the situation
thoroughly. They will provide an unbiased assessment of any potential
hidden damage that could lead to long-term issues if left untreated.

If
the mitigation company deems repairs necessary, it's important to
communicate this to the tenant and explain the potential risks of not
addressing the issue promptly. It's possible that the tenant may be more
willing to cooperate once they understand the potential consequences of
not taking action.

However, if the tenant insists on not allowing
the repairs to be done, it may be necessary to consult with a legal
professional to understand the specific tenant rights and regulations in
your area. Depending on the severity of the situation and the
applicable laws, there may be options available to either compel the
tenant to cooperate or, if necessary, terminate the tenancy.

Given
that the tenant is on a month-to-month lease, you do have the option to
provide notice and terminate the tenancy if it becomes an unresolvable
issue. However, it's advisable to consult with a local attorney or
property management professional to ensure that you follow the
appropriate procedures and adhere to any legal requirements.

Ultimately,
the priority should be to protect your property from further damage and
address any potential safety concerns. Finding a solution that works
for both parties is ideal, but if that proves difficult, it may be
necessary to consider alternative steps to safeguard your investment.

Please
note that this is general advice, and consulting with a legal
professional who is familiar with the specific laws and regulations in
your area is recommended for a more accurate assessment of your
situation.

Best regards,

[Michael Smythe]

@Wesley Jensen work with the tenant to have the area properly inspected for mold, possibly even having a mold test done.

You may need to check your state's Legal Entry rights to do it while the tenant isn't there if they will not cooperate.

[Lynn McGeein]

@Wesley Jensen while he’s checking his legal rights, give proper notice required for entry for the evaluation, make sure you’re there to allow entry, and have it done. Check so you know what notice your state/local laws require. If you’re concerned about a long-term problem and already filed a claim, best to have it checked now as your insurance company usually won’t cover damage that’s left to sit and become a major issue. Same tenant who doesn’t want the evaluation might be suing you for mold this summer, so do what you feel is best for your unit and safety of its occupants.

[Chris Seveney]

Quote from @Wesley Jensen:

Hey everyone! I have a strange situation and am curious what everyone’s thoughts are. I had a cold water line pex fitting fail in the wall at my duplex. Water came in through the cabinets for 10-15 minutes and it destroyed the microwave and the controller on the boiler. My tenant cleaned all the water up but it’s unclear any residual damage in the wall or under the floor etc. I have filed an insurance claim and they are sending a mitigation company out who says they will assess and may (if needed) pull up the floor, cabinets, drywall, whatever needs to be done. I told my tenant the plan and he said he thinks it’s dry enough and liveable and does not want the work done and himself potentially displaced. He said he will reach out to the state for his legal tenant rights in this situation. I asked the insurance company what happens to him if it’s unlivable and they said they will reimburse me for missed rent, but if he is displaced it’s on his renters insurance policy to pay for hotel or whatever he decides. If work needs to be done to mitigate long term damage, can he say no to it being done? He is on a month to month lease so potentially I could give him notice and wait until the end of March. Any/all thoughts are welcome. Thanks for the help!

 Have you personally looked at it? Sometimes an insurance claim is a rabbit hole you do not want to go down. Also do you require your tenants to have renters insurance? If not that is why he is putting up a big stink because he will get displaced and will have to pay out of pocket whihc is probably more than rent.

If he has insurance then tell him to call his renters insurance.

This is of course why it is so imperative to make sure someone has renters insurance. 

[Wesley Jensen]

Hey all, thank you so much for the replies and advice! The mitigation company hired by my insurance came out yesterday and said there’s a lot of moisture and the floor, cabinets and walls need to be opened up and dried. They somehow convinced my tenant it would be livable during this and my insurance agent has said they can pay me half a month rent if he stays (which I will pass the savings along to him) and if he decides it’s not live able they will give me a full months rent so he doesn’t have to pay. If he decides to go to a hotel he will have to go through his renters insurance (which I require per the lease).

The pex fitting that failed is part of a class action lawsuit and even with that info insurance won’t pay to have them all replaced. As the walls are open I’m going to pay out of pocket for any that are accesible to be replaced and then look into the lawsuit or file my own (all dependent on how much it costs) to be reimbursed.

Thanks everyone for the replies and advice, I sincerely appreciate it and if you have any more please keep it coming!