Slumlord Subrogation: Subrogating Landlord/Tenant Property Losses

By Gary Wickert | February 6, 2014

  • July 1, 2015 at 10:03 pm
    Don says:
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    Thank you for writing this article.
    I am a landlord in NC (a subrogation state). What I have recently learned after now being with the same insurance company after 12 years is that if the tenant accidentally (or intentionally as either situation is always hard to prove) burns down my rental house and they don’t have renter’s insurance, I am out of luck! My insurance company WILL NOT PAY TO REBUILD THE PROPERTY. Let that sink in, I pay for insurance to protect my asset and I would not be covered if the tenant is liable! The tenant is the one that is at fault and if the tenant had renter’s insurance my insurance company would collect from the renter’s insurance. But since the renter has no insurance and there is no co-insurance in my state, the house burns down and I have no house and still have to pay a mortgage! For any landlord that has property in a subrogation state, they will find out the hard way that they are NOT PROTECTED when the tenant is negligent and causes damage!

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