Tenant causes damage, I offer to settle, they invoke insurer.

[Harry White]

This one made my head spin. I just have to get it off my chest.

A year ago the tenant installed a portable washing machine in an upstairs unit. The unit leaked into the suite below but was misdiagnosed by the remediation company as being a problem with my home's pipes. My insurer requires my tenants have their own insurance.

This happened three more times before the actual reason was discovered. Needless to say it was the worst year of my RE investing career. I paid out of pocket until I found out it was the tenants fault, then I filed a claim with my insurance co.

They covered it but a few weeks later I received a letter learning they had canceled my policy. This is a huge black mark on your insurance record and I could not find another insurer. I thought I was going to lose everything. I had health issues over this.

Eventually I found an insurer at twice the cost for much worse coverage. My reserves and nerves were both depleted. I decided to send a polite letter with photos to the tenant (who left shortly after the portable washing machine was discovered) outlining my losses not covered and asking for a small cash settlement from them.

I thought they would either pay or discard the letter. I didn't send a demand, claim, or invoice, it was an offer. I did not anticipate what they did next - they filed an insurance claim and thrust me into a battle with their insurers legal dept. The insurer used intimidation and obfuscation to avoid paying anything. I did not want a legal battle so I just stopped pursuing anything.

A month later the tenant indicated that their insurer had claimed "no liability" and as a result the tenant had decided to file suit against ME!

This has gone beyond what I can handle, to go through this. I couldn't believe that my insurer would require the tenant to have insurance, which would mean the tenant could file a claim if they damaged my unit and I would have to fight their legal team over a few thousand dollars.

Now I am trying to figure out my next move and make heads and tails of how vulnerable landlords are.

Any comments or advice welcome.