Who Pays for Damages in a Rental Fire?

9/4/2020 (Permalink)

In an office fire, your first concern is your safety and well-being and that of everyone you work with. You also need to be mindful of the repair, cleanup and restoration costs and what responsibilities you have. If your office is in a rented apartment building in Chicago, IL, it’s important to understand that your insurance coverage may not take care of all the damages. Make sure you understand what you face in the aftermath of this apartment fire.

Insurance Options

If you rent office space for your company, the landlord will purchase property insurance to cover damages to the structure. To protect anything you own, it’s a smart idea to get additional commercial renter’s insurance. This will come in handy if an apartment fire starts, even if you accidentally caused it. This insurance can compensate you for the following:

• Damaged or destroyed furniture you purchased
• Décor or pictures you purchased
• Personal knick-knacks and memorabilia
• Personal equipment you used for work but purchased yourself

Property Insurance Payments

Regardless of the cause (unless it was on purpose), the property insurance should cover all fire damage to the building itself, including walls, ceilings, flooring, the roof, electrical equipment or other building systems. Make sure your landlord has comprehensive coverage against fires.

When You Have to Pay

Fires are not only destructive because of the scorching flames, but water damage and smoke damage can be significant as well. If you happened to have caused the fire due to an accident or mishap, the respective insurance coverages should kick in. However, if you intentionally caused the fire, not only will you be held financially liable for damages and to pay for professional fire restoration teams to clean up and rebuild, but you may be prosecuted.
An apartment fire has the potential to damage or destroy a significant amount of your work materials. It’s a wise idea to supplement the property coverage with commercial renter’s insurance.