State Specific Question About: CALIFORNIA (CA)

Fire in studio apartment appears due to tenant negligence: what are legal and financial obligations concerning termination of tenancy, clearing out possessions, uninhabitable, renter's insurance costs to landlord, tenant's reimbursement for damages caused to property, loss of rental income from insurance, homeowner's insurance, anything else that I can't think of at this stressful time?

One of my tenants had a candle shrine placed on a wooden dresser without enough candle holders and burned down 2 and 1/2 apartments in an 8 unit property.

The tenant didn't have their mandatory renters insurance. They claimed to the fire investigators that my smoke detectors weren't working and that I'm a slumlord. The tenant also gave my insurance company a line of BS.

Then my tenant contacted a lawyer and wanted me to pay for them to stay in a Hotel during the re-hab until their unit was ready to move back in. And replace their damaged property.

My insurance said they aren't going to pay much because it was my fault!

I met the fire marshal and insurance investigator the next day on the property. I explained that every six months I do a smoke detector and all around inspection. That in each hard-wired smoke detector is a 9 volt battery back up with the date and my initials written in indelible ink. The investigator and fire marshal said, "Well since you have 5 un-touched units, we will see if those smoke detectors have your labeled batteries". And in those five units there were 3 smoke detectors with recent labeled back up batteries. So my tenants claims that I had non-operational smoke detectors didn't make sense.

The fire marshal looked through the rubble and found two smoke detectors with removed batteries. One of the removed batteries was found in the remote control of a kids toy car. The tenants had removed the battery so their kid could play with his remote car.

All of a sudden they re-investigated and found that the fire did start in a bedroom with a dresser catching on fire and candle wax was all over the surface. I was not a slumlord, but a victim of tenant misconduct and carelessness.

Still under rent control, after the file damage was repaired, I had to let my tenant move back in at the same low rent controlled rate.

So instead of my tenant filing a lawsuit against me for their belongings and hotel stay, I filed a case against my tenant for the repairs and lost rent, half a million dollars.

My tenant then agreed that if I dropped the law suit they would waive any claim to my property and damages.

All those great procedures you diligently followed paid off. Congratulations on setting up a great system of maintenance and most importantly sticking with it even thought at the time it just seemed like extra work.

Philip,

Sorry to hear about your fire. They shake our world. Yes it is stressful but the emergency is over and hopefully everyone is safe. Now the stress is the added management of the claim and the repairs. Not hard is you stay with it. Ask questions here.

First, a proper lease covers all those things you ask. What does you lease say?

I'm not in CA but we've had 5 fires so I feel confident offering some general advice.

YOU are the only one who cares about your property and the lost rent during inspections and rehab. Stay on top of this. Do something EVERY day to keep it moving.

Step #1: sit down and READ your policy. YOU must know it because the ins co will conveniently miss things like shrubbery damaged by fire or firemen, boarding up the building to keep the city happy, utilities during rehab...

GENERALLY SPEAKING:

The lease ends the moment the home is inhabitable.

I first make arrangements for them to pick thru the rubble, set a firm deadline on this, then have them sign a statement they are all done, giving us permission to dispose of anything remaining.

*I* am not required to provide alternate housing. Might be state specific. THIS is a huge reason for the res to carry renter's ins.

You still need to supply your state's requirements for a written accounting of their security deposit.

I apply all of their deposit to cleaning up and handling their personal items left in the rubble. Take a TON of photos to prove these items were worthless, beyond repair.

Their renter's insurance should pay your deductible and handling related to their personal items, and possible any repairs not covered by YOUR policy. (but don't hold your breath)

You will find out very quickly that the ADJUSTER works for the ins co. His job is to protect the ins co's money, giving you enough to make you go away but not the full amount you are entitled to.

If this is a major fire suggest hiring your own PUBLIC ADJUSTER. Example: My carrier's adjuster calcuated and offered $42,000 to rebuild after a certain fire. MY adjuster calculated the same fire, based on my written ins policy at $98,000. Ins Co settled for $68,000, the max of our policy. My fee was a few thousand to gain several thousand.

You policy should include lost rents. Prove the amount with a copy of your lease. But know they might cap off at 90-120 days.

Tip: after cleanout, during rehab, spray EVERYTHING with Zinsser Smoke Sealer. We use white so we can see it. Smoke odor is particles and this stuff locks them in permanently. No remaining smoke odor.

Keep us posted on your progress!

BRAD