Dealing with an Accidental Fire Caused By Tenant In Massachusetts

Published on June 21th, 2023

Owning a rental property can be a lucrative venture for landlords, but it also comes with stress, dealing with rental insurance coverage, landlord's insurance, making sure your tenant is paying rent and ensuring that a legal rental agreement is in place.

What happens when the unthinkable occurs at your property - an accidental rental property fire caused by your tenant?

Throughout this article, we will give you a step-by-step guide on dealing with renters insurance, the fire department, and what you, as the property owners, can do.

The Statistics of Fire Damage at Rental Properties In Massachusetts

There are an estimated 100,000 rental property fires in any given year, causing billions of dollars’ worth of damage to rental properties and hundreds of insurance claims, according to the National Fire Prevention Association.

While the cause of the fire might be different in each situation, it doesn't change the fact that your property is now damaged, causing you to lose rent on a rental unit (lost wages into your pocket) and displacing a tenant.

Your First Steps as a Landlord After a Fire Causes Property Damage In Massachusetts

As a landlord/ property owners, its essential that you collect as much information about the fire as possible, completing your own investigation by asking your tenants questions to see if they know the root cause of the fire.

The fire department's report will also outline why they believe the fire started. If your tenants caused the fire by accident, like they lit a candle and knocked it over, you need to know. Damage caused by the fire can be extensive, and restoring the home to a habitable condition will take time - what can you do for your tenant's inconvenience in the meantime?

Helping Your Tenants Find New Housing In Massachusetts

Depending on the cause of the fire at the rental property and the terms of the lease provisions that you and your tenants have agreed to, you may have to help your tenant find new housing.

Also, depending on where your property is located, the property owner might have to front the costs associated with relocating tenants. Typically these costs are reimbursed by your insurance company once your insurance claim is finalized. If a landlord pays the costs of relocating a tenant, it's important to keep an accurate record by both the landlord and the tenants of these efforts after a rental property fire.

A good place to start in helping your tenants find suitable housing would be to contact the local red cross or see if the fire department has any contacts.

Connecting With Your Insurance Provider to Check Your Insurance In Massachusetts

Whether your property is completely destroyed or has sustained minor damage caused by the fire, its important to reach out to your insurance company right away to begin a claim.

You will have to pay the landlord's deductible rate for your insurance company, which will be far less costly than the repairs if the property damage is severe. Most landlord's insurance policies will cover damages and certain costs associated with fire damage and water damage associated with quelching a fire.

If the property is a total loss, it's up to the insurance company and the fire department to determine who is at fault, then the landlord's responsibility to decide whether or not to rebuild.

Reaching out to your insurance completely immediately after fire damage occurs at the premises should be at the top of your list, as processing a claim does take time.

Working with Your Tenant's Rental Insurance Coverage In Massachusetts

In most states, tenants are required to purchase a renters insurance policy or renter's policy to cover damage that go beyond the amount of their security deposit. If a tenant is found responsible for a fire, they will also be responsible for some of the cost associated with the landlord's repair efforts.

As a landlord, you will want to work within your lease terms and with both your property insurance and the renter's insurance to cover the costs of the repairs on the house.

Final payment for the repairs will come from the insurance companies involved.

Restoring Your Property with Fire Restoration Companies In Massachusetts

Once you are ready to start the repair work on your property, you will need to get in touch with a fire restoration company to assess the damage and provide quotes to your insurance company for the work.

The fire restoration company will be able to answer any questions you might have about repairs and a timeline for when your property will be habitable once again.

To find a trusted local fire restoration company, reach out to your local fire department, friends and family, or ask your insurance company for their suggestions.

Things happen, and fires can destroy rental properties despite a tenant and landlord's best efforts. Know that there are solutions to restore your property, find a new home for your tenants, and insurance in place to help cover the cost of repair work and cover the loss of non-payment from your rental unit.

For more information on property fires and how to handle them, please check out our blog.