Burst Pipes Floods House - Who is Liable

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Mr1013Dj

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My tenant called in a panic that the pipes had burst and water was everywhere in a single family home I rent. Upon arrival, the source of water was a burst pipe on the upper floor of a multilevel home. The water did extensive damage to floors, ceilings, walls etc on all floors and flooded basement.

Besides that I was also shocked to find the tenant had moved almost all furniture and fridge and other belongings out without informing me of a move. I didn't see much activity there for seveal weeks and all the windowshades were pulled down and when I inquired was told they were staying at a family members who was sick and needed help. They still paid rent and said they travelled back each weekday to bring kids to school. I am kicking myself for not insisting to gain access to property but I didn't think I could just go in without their permission.

It appears as though a pipe had frozen and burst because they called the utility to shut off the electricity 3 weeks prior and the heat needs electricity to operate.

My insurance company says I will not be covered because the utilities were shut off.

The tenant did not tell me they were vacating the property which had a one year lease which doesn't end for 5 months. They did not maintain renters insurance which may have included some liability coverage.

I think the tenant is clearly negligent but what are my chances of getting any money back and at what legal cost. They damage may be 10's of thousands, my guess would be 50-60K.

Does the utility have any obligation to let the homeowner know of a shut off?

I never had a problem like this and have been a landlord for almost 20 years. I abide by all the laws, pay my bills, pay my insurance, keep the property up, yet it sounds like I have no recourse and the legal costs may not be worth trying to collect from tenant.

They do own their own small business but I think it is a DBA. Collection issues have been an issue with the tenant in the past with other issues that they claimed were a result of a temporary issue which made sense based on their credit file. They have up to now been good with paying rent (sometimes late by a couple or three weeks) but they paid.

The house is now a total mess. I cannot repair until the water is remediated. So I am out rent, repair costs and my personal time and aggravation.

Please some advise as I am desperate? What type of attorney to seek? W
 
The tenant is 100% responsible. If they are not insured then you can obtain a judgment and put a lien on property.
You might be able to find at least partial coverage through your own insurance... you just have to work with them.
Depending on the wording in your lease, the abandonment of the property and shutting off of the utilities will be more than enough to win your judgment. The tenant will argue ignorance to the fact that pipes can freeze and burst, but that does not matter.

Speak with a local attorney to determine how to proceed. Unfortunately because of the value of the damage you won't be able to go through the simpler small claims process. For a minimal cost you will be able to assess the situation and determine whether or not to sue, or maybe find a better way to work with the insurance company.
 
Thanks for advice.

I assume then to be looking for a Landlord-Tenant Attorney.

What if he has no unincumberred assets? Can I attach earnings of company as well as him as individual? I may be in a long line.

The company he owns does contracting and would be capable of making any carpentry repairs. Can a judgement force them to make repairs? I am hesitant to persue that as the risk of getting shoddy workmanship from someone doing it for "free" is there.

As far as working with the insurance company what should be my arguement and does that require an attorney as well? I find insurance companies spend a good portion of their time trying to find a way not to pay a claim. I just find it somewhat rediculous that if a vandal broke into my home and had left the water on in the tub and I discovered it a week later I would be covered but because my tenant shut the electricity off I am not.

The tenant claims that he will help make it right but as you state I don't feel like it is at all my fault and shouldn't share in the cost. Also, I have lost my trust in him.
 
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