Essential Steps for Rental Property Owners to Take After a Fire

For rental property owners, a fire is a nightmare scenario. It is one of the most serious and stressful situations imaginable. It's not just about the damage done to your property. It is also about disruption to your business, your tenants property and well-being, possible legal issues and your peace of mind. When a fire strikes, the aftermath is chaotic, emotional, and often confusing. You’re suddenly faced with a mountain of responsibilities: coordinating with emergency responders, talking to tenants, managing your insurance claim, planning repairs, and dealing with lost rental income.

To help you navigate this difficult situation, here’s a comprehensive, step-by-step guide, to what a landlord can expect and what they need to do after a fire at their rental property.

1. Check in with Your Tenants Immediately

The very first thing to do is to ensure your tenants are safe. If the fire happened while they were home, emergency services may already be on scene and taking care of any injuries or evacuations. Once you learn about the fire, call your tenants or visit the property (if safe) to check in.

Be calm, supportive, and compassionate! Your tenants are likely in shock and worried about where they’ll live, what belongings they’ve lost, and how this affects their lease. If the property is uninhabitable, discuss temporary housing solutions. You are not necessarily responsible for providing tenants with housing, or funding. Your liability will depend on many things including state and local laws and the cause of the fire. However, it is in your best interest to at least make sure they have a place to go.

As a landlord, it is a best practice to require your tenants to carry renters’ insurance. Tenants should then be encouraged to file a claim for temporary housing and any damaged personal belongings.

If a tenant is injured, the immediate priority is to ensure the injured tenant receives medical care. Then, immediately notify your property insurance provider. Speak to your insurance provider about the next steps and how they want to manage any potential liability. You may want to contact your own lawyer, especially if the injury may be linked to negligence. Keep detailed records of all communications, damages, and reports. Prompt and professional action is a great way to protect your legal interests.

2. Cooperate with the Fire Department and Investigators

The fire department will likely conduct an investigation to determine the cause of the fire. It’s crucial that you allow them full access to the property and cooperate fully. In many cases, fires are accidental, but if there’s any suspicion of arson or code violations, a formal investigation may be launched.

Be available to answer any questions, provide building access, and supply maintenance or inspection records if requested. The results of their investigation could play a role in your insurance claim or legal responsibilities or liabilities, so transparency is key.

3. Notify and Engage with Your Insurance Company

Contact your insurance company immediately after the fire to begin the claims process. Most landlord insurance policies cover structural damage, loss of rental income, and liability coverage if someone was injured.

When you call:

• - Provide initial details about the fire.
• - Request that an adjuster be assigned as soon as possible.
• - Ask what documentation they’ll need (photos, receipts, tenant leases, etc.).

Keep detailed records of all communication with your insurer, and begin gathering documentation—photos of the damage, tenant contact info, maintenance logs, and anything else that might support your claim.

4. Begin Cleanup and Secure the Property

Once the fire department clears the site and you’ve received the green light from your insurance company, you’ll need to clean up the property and secure it to prevent further damage or liability. This might include:

• - Boarding up broken windows and doors.
• - Tarping the roof if it's damaged.
• - Removing debris and securing loose materials.

  
  

You should generally hire a professional fire damage restoration company to assess and manage the cleanup process. These specialists can help remove smoke, soot, and water damage safely, and they generally work very well with insurance companies. You normally want to avoid doing fire restoration yourself as it is very hard to get the smell of smoke, or mold caused by water damage, completely remediated if you are not a professional. Restoration companies are normally paid directly by the insurance company.

5. Start Planning for Repairs

Once the initial cleanup work is complete, you will want to work with your insurance adjuster and contractors to assess the full scope of necessary repairs. Depending on the extent of the fire, this could range from minor cosmetic work to a full rebuild.

Things to consider:

• - Hire licensed contractors with fire restoration experience.
• - Engage early with the local permitting authority. They may have specific guidance regarding the scope of the repairs and the permitting process for a fire damaged property.
• - Get multiple estimates to ensure fair pricing.
• - Coordinate timelines with your insurer to understand what will be covered and when work can begin.

If your insurance policy includes coverage for “code upgrade” repairs, this can be the time to bring older systems (like wiring or HVAC) up to modern safety standards.

6. Work with Local Permitting Authorities

Once you have a repair plan, your contractor will likely need to pull permits before work begins. This means working with your local building department or permitting office. Be prepared for inspections both before and after construction, especially if structural repairs or electrical work are involved.

Keep in mind:

• - The timeline for permits can vary—some cities are faster than others.
• - Delays can affect your insurance reimbursement and lost rent coverage.
• - You may be required to bring the entire property (not just the fire-damaged unit) up      to code depending on the damage.

7. Manage the Insurance Claim and Communicate with Your Lender

Dealing with your insurance company is an ongoing process. As repairs move forward, you’ll be submitting estimates, invoices, and documentation to secure reimbursement.

Some insurance companies will pay out claims in several draws and others may just make a single payment. It will depend on your carrier and the size of the claim.

If your property is financed, your mortgage lender may have a stake in how the insurance proceeds are paid out. It’s common for insurers to issue checks payable to both you and your lender. That means:

• - You may need your lender’s endorsement to cash checks.
• - Some lenders require inspections before releasing funds.
• - Be proactive, call your lender and ask what their process is for handling insurance    claims.

This can be a frustrating part of the process, so patience and frequent communications with both your insurance provider and lender is essential. Make sure you, and your contractor, build in extra time for:

• - Inspections (insurer, lender, permitting authority)
• - Lender payment endorsements
• - Bank holds that may be placed on large checks

8. Address Lost Rental Income

If your policy includes “loss of rents” coverage, you can file a claim for the rent you would have received while the property is uninhabitable. This is a crucial protection for landlords—especially if repairs may take many months.

To support your claim:

• - Provide copies of your lease agreements.
• - Submit proof of what tenants were paying.
• - Clarify the time frame your units will be vacant.

Keep in mind that this coverage usually only applies while you’re actively working to restore the property, so staying on top of repairs is important.

9. Communicate Frequently with Tenants

Keep the lines of communication open with your current tenants, and your former tenants, if the intention is for them to move back in at some point. Even if their lease is voided due to the fire, it’s good business to be helpful. Let them know when it’s safe to retrieve belongings, whether their unit will be rebuilt, and what their options are if they wish to return.

Being transparent and supportive now can save you from potential disputes later—and build goodwill if you hope to re-rent to them after the property is repaired.

10. Prepare for the Future

Once the dust has settled, take the time to reflect on what happened and how to take all your learnings to any other properties that you may have so you can be better prepared in the future in case of a fire, or similar issue, creates another large insurance claim:

1. - Review your insurance policy annually—make sure you’re covered for sufficient    rebuild  costs and lost rental income as well as liability coverage. 
2. - Be sure that your lost-rent coverage will be long enough to carry you through a major    repair or rebuild process. We would recommend 9-12months.
3. - Require tenants to carry renters’ insurance (and enforce it).
4. - Schedule regular property inspections, especially for electrical systems, smoke    detectors, and heating equipment.
5. - Build an emergency response plan and share it with your tenants.
6. - Review all your properties to ensure that there are no code violations or anything    that could create liability for you in case of a fire or some other major damage event.

Final Thoughts

Experiencing a fire at your rental property is a nightmare scenario! How you handle the aftermath can make all the difference. From supporting your tenants to managing your insurance claim and property repairs every step requires care, patience, and professionalism. While no landlord ever wants to deal with fire damage, being informed and prepared can help you come out on the other side with your investment—and reputation—intact.