The Quick Version: In a rental disaster scenario (e.g., fire, flood), the Owner (Landlord) is typically responsible for repairing the structure of the dwelling using their Hazard Insurance. The Renter (Tenant) is responsible for their personal belongings and any damage caused by their negligence, which must be covered by their mandatory Renter’s Insurance policy. Clear lease language and mandated Renter’s Insurance are essential for protecting both parties from unforeseen financial burdens.
As a rental property owner in Ellicott City, it’s principal to understand your responsibilities as you prepare for major storms and natural disasters that can cause extensive damage. This composes being informed how to handle the potential damage or impairment of your residents’ personal property.
Who is responsible for damage resulting from a disaster?
It’s a common misconception that any damage caused by a storm or natural disaster is totally the property owner’s responsibility. But really, both renters and rental property owners have liabilities as far as it concerns property damage. Taking into account these liabilities is an important part of being prepared for and recovering from misfortune.
By way of example, particular rental properties feature one or more large trees around the home’s exterior. If a tree on your rental property falls down during a storm and smashes a vehicle belonging to a resident, whose responsibility is it to cover the cost of repairs? In this situation, paying for the damage is not your responsibility at all. But as a matter of fact, the resident’s auto or renter’s insurance should cover the cost of restoring the resident’s car.
What about other types of damage caused by a natural disaster?
Floods, wildfires, tornados, and more are all potential events that rental property owners and residents may face now and then. In the unfortunate event of a natural disaster damaging a rental property, it is the legal obligation of the property owner to ensure that the living conditions of the property are safe and habitable for the tenants. At the same time, the property owner is, in addition, financially responsible for properly sorting out and covering the expenses related to the repair work required to restore the property to a habitable condition.
But on the other hand, the resident’s personal property, for example vehicles, the cost of transportation originating from an evacuation, lodging, food, and other expenses are all the resident’s responsibility. As long as the property is restored to a habitable state within a short period, the resident may still be responsible for the lease terms. They must have a really good renter’s insurance to cover, for the time being, needing alternative accommodations and to secure their personal belongings in case of damage or loss. Preparing your tenants to do so may save you both an extra headache in the event of a disaster.
What to Do in the First 24 Hours
When an incident occurs whether a fire, major leak, or storm damage the actions taken immediately afterward are critical for limiting financial exposure and determining liability. Both the owner and the renter have mandatory duties to perform during this emergency phase.
Renter’s Mandatory Duties (Mitigation and Reporting)
The tenant’s primary responsibility is to stop the damage from worsening and to notify the landlord immediately.
- Ensure Safety and Call Emergency Services: If the danger is active (fire, gas leak, electrical hazard), call 911 immediately.
- Mitigate Further Damage: Tenants have a legal duty to take reasonable steps to prevent additional damage. This might include:
- Turning off the main water valve for a severe leak.
- Moving personal property out of a rising flood area.
- Covering a broken window with plastic sheeting if safe to do so.
- Immediate Notification: The landlord or property manager must be notified verbally and in writing (email/text) within a few hours, regardless of the time of day. Failure to report promptly, especially for a hidden leak, can be grounds for negligence.
- Document Personal Property: Begin taking photos and videos of your damaged personal belongings for your Renter’s Insurance claim. Do not dispose of items until your adjuster has instructed you to do so.
Owner’s Mandatory Duties (Securing the Structure)
The owner’s focus is securing the structure and initiating structural repairs.
- Verify Safety and Access: The landlord must quickly assess the safety of the unit and determine if the property is habitable.
- Contact Landlord Insurance: Immediately file a claim with the Landlord/Hazard Insurance carrier. Provide them with the tenant’s report and any photos you can secure.
- Secure the Premises: Arrange for emergency services (plumbers, roofers, board-up companies) to prevent looting and stop structural damage from escalating (e.g., tarping a damaged roof, pumping out standing water).
- Determine Re-Habitation: If the property is uninhabitable, the landlord must communicate the estimated repair timeline and invoke the lease clause regarding temporary living arrangements or lease termination, depending on the severity and local law. (The tenant’s Renter’s Insurance should cover their temporary housing.)
How to stay prepared as a landlord
As a landlord, it is beneficial to prioritize disaster preparedness. Most likely disasters can really impact your rental properties and tenants. To ascertain the safety and security of your properties, contemplate doing a thorough property risk assessment, having possession of good insurance coverage, and dealing with preventative measures such as reinforcing vulnerable areas, securing loose objects, and outfitting surge protectors.
Formulating a comprehensive disaster preparedness plan and properly communicating evacuation routes and emergency contacts to your tenants are very important steps. Putting in place protocols for securing the property specifically contributes to proactive disaster preparedness, and at the end of the day, safeguarding your rental properties and the securing the safety of your tenants.
At Real Property Management Metro, we are keen to help Ellicott City rental property owners like you navigate the trials and challenges of natural disasters and other weather-related incidents. Contact us online or give us a call at 443-718-9832 today to know more in connection with how we can give you the proper advice and support you desire to have.
Originally Published on October 5, 2018
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