Insurance Damage

Tax Planning and Financial

If there is disrepair at a rented property as the result of an insurable peril, and the matter is reported to the insurance company with a view to claiming for the damage, there might be a delay in having the repairs carried out as loss adjusters and quotes might be necessary. Unless the disrepair is due to the fault of the tenants, then you, as landlord, are responsible. Unfortunately, therefore, if the disrepair is going to take a long time to sort out with the insurance company, you are liable to the tenants for possible compensation in the form of a reduction in the rent, or re-housing the tenants for the period in which the rented property is uninhabitable. Some insurance companies might, however, cover compensation to tenants as well as the cost of repairs.