I have a section 8 tenant who burned down our house. The insurance is covering costs to rebuild, and tenant is now worried where her and her family will live until the house is rebuilt. Now I'm confused what happens next. I'm worried about having to continue to pay my mortgage without having a renter's check every month. Haven't contacted section 8 yet about the matter but I assume they will stop paying me since the tenants aren't living there for the time being. Tenants are being put up by the Red Cross for now, but will have to find other options to live since we can't afford to pay our mortgage AND find them a new place to live. Anyone have any suggestions?
2006-08-27 04:55:54 · 6 answers · asked by Mon I 2 in Business & Finance ➔ Renting & Real Estate
Thanks everyone for all the informative answers... let me add more detail about the situation though...
Upon talking to neighbors, the general consensus was that the tenant's son deliberately burned down the house after an arguement with his parents. Many of the neighbors already relayed this to fire officials.
My insurance policy doesn't include lost rent, only the costs of covering the repairs to rebuild the actual house.
2006-08-27 05:32:20 · update #1
You have no obligation to house your tenant during the reconstruction of the property. If you have loss of rental coverage on your dwelling/fire policy your insurance company will pay the lost rent up to the policy limits. If not, you're on your own for that.
I went through a somewhat similar situation when one of my rentals became uninhabitable following a sewer line collapse. The tenants were furious that I would not cover their living costs during the repairs though they did not have to pay rent for the 5 weeks that repairs took. My insurance covered the mold remediation and covered the lost rents during the repairs.
If you can prove your tenant's liability for the fire, you could force them to make up the lost rents out of their own pockets or their renter's insurance policy. Since it's a Section 8 tenant, they probably don't have renter's insurance and don't have any resources to tap for the lost rents. It might be worth pursuing just to get a judgement that you can enforce if their situation changes though.
2006-08-27 05:17:06 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The fire dept and insurance company will determine if this person did this on purpose or out of neglect otherwise you shouldn't assume that THEY burned it down. Anything can happen to anyone or it could have been a short in the wiring, who knows? I know your angry about your house, I would be too but try not to blame them unless you have good reason. Your insurance may also help you cover the cost of the mortgage for a few months or your bank may be willing to give a reprieve for a few. Ask your insurance agent about your options.
2006-08-27 12:06:54 · answer #2 · answered by Cyn 3 · 0⤊ 0⤋
Your insurance should be covering the cost for rental Payments. If you set your homeowners insurance for "tenants" then they should cover the damage the tenants did to the house.
2006-08-27 12:05:11 · answer #3 · answered by loveslady94 2 · 0⤊ 0⤋
Doesn't insurance cover lost income caused by the fire?
2006-08-27 11:59:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you're right section 8 will stop paying rent asap..you need to discuss your mortgage co. they will advise you and hopefully make adjustments for you. Also this is a tax issue because you can claim losses from income when filing
2006-08-27 12:04:35 · answer #5 · answered by goldengirl 4 · 0⤊ 1⤋
id say get a small loan to tide you over until the place is rented again.
I dont mess with section 8...i hate to generalize, but there is a certain mentality that goes with folks on public aid
2006-08-27 14:11:58 · answer #6 · answered by Anonymous · 0⤊ 1⤋