My store was destroyed by fire as a result of a fire that started in another tenant's unit. I did not have insurance but the other tenant did. The fire department's and the building's insurance carriers investigators report indicated that they believed the fire started in the other tenant's unit. I sent a certified letter of claim for damages to the business owner as well as the building owner but received no response. What are moy options. My loss was in excess of $200,000. I had a retail computer store.
2007-04-25 07:04:03 · 7 answers · asked by pool 1 in Business & Finance ➔ Insurance
Perhaps you were expected to provide your own fire insurance.
2007-04-25 07:10:24 · answer #1 · answered by Tony A 6 · 0⤊ 0⤋
Sorry to hear about your loss.
The owner of the building would not carry contents coverage and would not be responsible for your contents unless you can prove that the fire was a result of his negligence. For example, the owner was aware (by letter(s) from tenant) of faulty wiring and never repaired it, which caused of the fire. You need to establish negligence on the owner's part to be successful in pursuing a liability claim against him.
The other tenant's insurance would not extend to the contents of your unit unless, again, you can prove that the tenant's negligence caused the fire. If the tenant was negligent in starting the fire, then there is a possibility his liability coverage would apply.
It is always the policy in retail business, as it pertains to insurance, that the tenant/business owner carry coverage for his/her own business property.
If a tornado damaged the building and destroyed all your business property, would you send a certified letter to God asking for reimbursement (since the damages resulted from an act of God)?
You can claim it as a casualty loss on next year taxes. Good luck to you.
Claims Manager
2007-04-25 17:17:04 · answer #2 · answered by claimsadjuster 1 · 0⤊ 0⤋
You would have to submit a claim under the liability portion of the other tenant's or landlords insurance policy - assuming they have a policy which includes liability or "fire legal" liability coverage. The burden of proof however - is yours to show that the fire did in fact start in the other unit, and that the other unit owner was somehow negligent. It would be important not only to determine where the fire started but how.
If I were you, I would start by trying to find out who the Insurance Companies are that insured the tenant and the landlord, and contact them directly letting them know that you wish to submit a liability claim against them. Might be wise to see if you can get an attorney to send them a letter of representation - and to represent you. If the facts show that there is a good chance you would win if it went to court, maybe they might agree to try to settle with you out of court. Its worth a shot , but, to be honest , I do not like your chances unless there is good evidence as to what started the fire etc.
Good luck ... p.s. Why didn't you have insurance for your store - it would not have been TOO costly for a small retail store.
2007-04-25 14:58:29 · answer #3 · answered by Dee 1 · 0⤊ 0⤋
This is a bit complicated and I am no attorney, however, there are some remedies that you do have. They are:
1) Your certified letter for damages to the business owner as well as the building owner should have been for a request for information regarding the insurance company (carriers) that either or both of them have and use.
2) Once you have this info, then you can send a claim directly to the insurance company(s) yourself.
3) Since you sustained damages to your property, you are one of the "first in lines" to get a copy of the police and fire departments reports as to their determination of how the fire started and whether they believe it to have been due to vandalism, negligence, etc. This will be an immense aid in determining the amount of recovery that you may or may not be entitled to.
4) In cases of negligence, you will probably be entitled to damages; you may NOT be entitled to any damages if you have not carried insurance yourself...you should check the legalese in your lease or rental agreement as most landlords spell out their intentions and any/all local ordinances regarding the lack of their liability with regards to these happenings.
5) Based upon the police and fire departments findings on the event, i.e., whether they find negligence or intent, you may even be entitled to acquiring a small business loan with no or reduced interest rates!
Good Luck!
2007-04-25 14:19:53 · answer #4 · answered by deborahlynch007 2 · 0⤊ 0⤋
You only have two options.
1. Hire an attorney and sue the other tenant and the landlord and everyone in between. ( Hopefully negligence will be determined by the other tenant) this will cost you some $ and some time but hopefully you will get restitution. The problem you have is that being without insurance on your part and not having "Business Interruption" coverage you may have to act on step #2 of this scenario.
2. File Bankruptcy
2007-04-25 19:15:04 · answer #5 · answered by DFK 3 · 0⤊ 0⤋
Why did you not have insurance?
That is one of the biggest blunders that business owners make? You never can tell what kind of disaster will strike and put you out of business.
You can try to sue to get the damages, but it will cost you time and money. Also, there is no guarantee that you will get the money back. Insurance companies are pretty good at not paying when they don't have to. It is possible that the guy did not carry a liability insurance. If that is the case then you would have to sue that business owner. Even if the person did carry liability, I would bet that the insurance agency specifically outlines in what events they would have to pay.
The big lesson here is to get insurance and make sure that it covers you in events like these.
2007-04-25 14:11:04 · answer #6 · answered by A.Mercer 7 · 0⤊ 0⤋
You file a claim under your insurance policy. If you don't have an insurance policy, you're uninsured. No one else is responsible for it, unless they set the fire deliberately. In which case, it's a criminal act, and not covered by their insurance policy.
You are out of luck. Their fire policies aren't going to cover you. Fire doesn't work that way. The ONLY chance you have is getting coverage under their LIABILITY policies - and you're not likely to collect there, either. You're not going to get any response, until you file a lawsuit - they will likely defend, and most likely win. Meanwhile, your attorney fees will be really high. Expect to pay an attorney $10,000 retainer to work on the case, and it could cost you a lot more than that.
I have no doubt your lease says you're supposed to carry your own fire insurance. They ALL do.
2007-04-25 14:15:13 · answer #7 · answered by Anonymous 7 · 1⤊ 0⤋