Electrical Fire, House Inhabitable - What have you experienced?

[Tania Patch]

Hi all!

The house is a 2-family I own that I was planning on occupying in the spring once the tenants left (through legal owner-occupy channels). I get a call from the local police department at 4:30am that there was a fire! Thankfully everyone got out unharmed, but it looks like the house will need a gut and is inhabitable. So far I have been told by the fire investigators that it looks purely accidental and it was an electrical fire behind sheet rock.

Meanwhile, I have one set of the tenants that is extremely unhappy (understandably so!) - but I am beginning to get the impression they are going to fight tooth and nail on getting back into the house once rehabbed. According to the adjusters and others, this is probably a 1 year rehab to turnkey. Its an awful situation to begin with, but it looks like there are going to be added stresses with these people. 

Anyone else have an experience like this ? Or any similar to share? I have been a landlord for 15+ years and never dealt with a fire before.

Tania

[Nathan Golding]

Typically insurance will help with the cost of relocating the occupant of the house that is no longer habitable.  That could be motel cost and/or moving cost to a new rental.  I would have the tenant speak to their insurance agent and talk to yours before giving them anything out of your pocket.