Landlord Dispute / Insurance Subrogation?
June 25th, 2011 | 
Author: Landlord damage dispute and insurance company subrogation?
Over the holidays I left my college apartment to return home. I was notified on Christmas Eve that my pipes had frozen due to me turning my heat off. The landlord informed me that this happened every year and the average costs were $1000-2000 for the tenants involved.
As terrible as this was to hear, I felt I could get through it. After a couple weeks I called the landlord again to see if I could get more concrete numbers. He informed me that the cost was nearly $4000 now, and mentioned some somewhat high costs for his own labor in addition to the company they hired to clean up the flood in the lower apartment. Amazed at how high the cost had risen, I asked if he could give me a HIGH ballpark figure where there was zero chance it could get any higher. He said $5000.
Approximately 1 week ago I went to pay my rent check and the landlord informed me that he now had all of his figures in, and after talking down some company $1600 (keep in mind the actual estimate should be $1600 higher if they didn’t talk them down) the new and final dollar value for damages was nearly $6900.
I recently received a letter in the mail asking for the $1000 deductible the landlord had to pay to have his insurance company cover the remaining $5900. The letter stated they were unsure as to whether the insurance company would pursue any claim to the $5900 remainder after the deductible was paid to my insurance company.
My question is this:
1) Based simply on my description of the story, does this seem legit or does it seem to have some issues that I may wish to fight the charges in court. I realize the legal system is expensive, and after attorney fees and court costs I may only save a few dollars if I actually win.
2) What in your experiences do you see the chance of the insurance company going after me for the remainder if I do go along and pay the deductible.
Thank you, all help is appreciated.
Posted in Landlord Tenant Law
Did you sign a lease/rental agreement.? and in so signing was there a clause stating the heat situation? as if you were aware of plumbing requirements as to the heat explicitly? seems to me the insurance company your landlords has , would cover (that’s what its for) all the expenses. if any your part, would be the $ deduct able.. contact a lawyer , the first 10 minutes are usually free. as for his high personal; $$, help, sounds to me like a rip off.. taking advantage of your inexperience.. good luck.
1. It’s legit.
2. About 95%. Turning off the heat is blatant negligence. If you have renters insurance, you need to file a claim with it – but the standard policy DOES have a liability exclusion, for damage to property rented to you, so don’t expect it to cover.