Filing a renter's insurance claim -- what to do?

[Safire]

First of all, the landlord is a publicly traded REIT. This is not a Mom-and-Pop landlord. This is 10th year at this unit.

Situation: On May 23, I noticed water pooling OUTSIDE my apartment. I immediately called the leasing office and let them know this. On May 25, their maintenance guy came to check it out, could not "figure out" what it was and left, saying he will consult his supervisor. On May 28 (day after Memorial Day), his supervisor came around. claimed that there had been a plumbing leak and that the cabinet under the sink was "completely destroyed", the drywall is wet, floor is wet etc etc etc.

On May 31, they brought in an outside vendor to "dry" the entire kitchen. These guys ripped off the sink and the dishwasher, stored them in the patio, ripped off the cabinet and I've been without a kitchen since.

Today (June 4), the maintenance supervisor and his "regional manager" came around, told me they were charging me $15000 for NOT notifying them of a "faucet leak" and that they want me to notify my renter's insurance and put in a "liability claim". When I protested saying I notified them as soon as i saw the water outside the unit (and had never seen water stagnating inside the unit), they claimed I was lying (!) and it didn't matter what I said, they were going to make me pay $15K to replace the cabinets, for the drying, and the cost of "labor" to install the cabinets. If I don't pay, I will be sued (not in small claims as this is above small claims limit in my jurisdiction) and I will be reported to the credit bureaus "dinging your credit so you can never rent anywhere else".

My questions are:

1. Who is the proper professional I should hire to get a second opinion on? The landlord claims that water must have collected on the countertop and slowly seeped down into the sink. Is this even possible? The maintenance guy claims the cabinet was damaged. As far as I could tell, it was NOT damaged at all, except for patches at the bottom (which I thought was paint peeling). There was NO bloating (as he claims) of the wood under the sink and the doors (of the under-sink cabinet) closed properly. I need a second opinion to determine how this could be my fault and need to know what professional to hire to determine this.

2. If the renter's insurance company denies the claim, aside from negotiating a payment plan, what else can / should I do?

3. Isn't the renter's insurance supposed to defend me if I am, in fact, sued for these damages? Or does this depend on the policy itself?

4. What should I do regarding the reporting to the credit bureaus? Can they report me as soon as the renter's insurance denies the claims? How does this collection process work?

IF the independent professional tells me if was my fault, I will pay this as I don't intend to create problems for myself or for my family. But I would appreciate some advice on my questions as I am not able to think straight and need some neutral feedback.

Please advice. TIA.

 

[Koolau]

No idea how to proceed, but I'm sure you were given some "rules" by the "landlord." I'd check them and see if your situation is covered therein. I'm sure there are some things you would be responsible for, but not a leak that you couldn't detect until it got so bad that you saw it outside.

I would guess that no one can enforce something they can't prove against you. After all, why would you NOT contact the landlord IF you knew you had a leak in your cabinet? Doesn't make sense.

My gut tells me you are not at fault and you shouldn't owe, but YMMV.

 

[Safire]

No idea how to proceed, but I'm sure you were given some "rules" by the "landlord." I'd check them and see if your situation is covered therein. I'm sure there are some things you would be responsible for, but not a leak that you couldn't detect until it got so bad that you saw it outside.

I would guess that no one can enforce something they can't prove against you. After all, why would you NOT contact the landlord IF you knew you had a leak in your cabinet? Doesn't make sense.

My gut tells me you are not at fault and you shouldn't owe, but YMMV.

Thank you. I did reiterate to their "regional corporate manager" (or whatever his title is) that I reported as soon as I saw the water pooling outside my unit and not an hour later. They are threatening to trash my credit if I didn't pay. That threat alone is a bullying / intimidating tactic, using which they hope they can get me to pay for something I did not cause.

 

[Koolau]

Thank you. I did reiterate to their "regional corporate manager" (or whatever his title is) that I reported as soon as I saw the water pooling outside my unit and not an hour later. They are threatening to trash my credit if I didn't pay. That threat alone is a bullying / intimidating tactic, using which they hope they can get me to pay for something I did not cause.

Threaten to sue them back - they have a lot more to lose than you do and ruining your credit for a frivolous suit is (as you point out) corrupt business practice.

I'd call the BBB and let them know what this company is doing. Do you have a local maintenance person or staff? I'd contact the leasing office as well and document that you DID contact them with the issue.

I believe you are in the right, but you may have to fight for this one. Sorry you find yourself in this mess. Don't let the bozos beat you down.

 

[Sunset]

The credit rating threat is BS , as you have not been proven at fault for any damage/costs.
Hopefully you have renters insurance, as they should/would defend the claim.
I've never been in this situation, but if I was, I would call the insurance company as maybe they want to send someone (at their cost) to look over the situation and determine it is false or true, and then the insurance company will either fight it (and it doesn't affect your credit rating as it's against the insurance company) or the insurance company will agree it's your fault and pay the damage (and you pay deductible).

I'd certainly tell my side of the story, and let the insurance company look at the kitchen and removed parts.

 

[frank]

I think it is ridiculous that they think you should have reported a leak in their equipment that you did not even know about. I would delay as long as possible, have your own insurance company check it out, and deny any claim they make. on this order if you were out of town for a week and one of their pipes burst and ruined the interior of your apartment it would be your fault because their equipment failed.

 

[Kings over Queens]

If you have renters insurance, I suggest you report the threatened lawsuit to the insurance company. They will represent you and hire an attorney if necessary. It's highly unlikely they will deny a claim of this nature.

I'd also suggest a consultation with an attorney familiar with Landlord/tenant issues. You are going to need help with getting the apartment back in habitable condition and enforcing lease terms.

I see these as two separate issues.

On edit, you may also have coverage under the renters policy to pay for suitable housing expenses while your unit is repaired.

 

[Walt34]

While you said you've been living there for ten years, are you sure there isn't a local government agency that handles landlord/tenant disputes? Where we used to live in MD the county we lived in and several surrounding counties had what they called an "Office of Landlord/Tenant Affairs" that handled disputes like that. And at least where we lived that office had teeth! If the landlord was wrong it was very costly for them to make that mistake.

Failing that, perhaps a local tenants group could give you good advice or at least point you to some knowledgeable lawyers to contact.

 

[Kings over Queens]

any update on this?

 

[Aramis]

If this is still a live issue, I might be able to offer some guidance - 30 years in the risk management field.

 

[imnontrad]

I think the best thing to do at this point is to get a lawyer. Also gather ALL documentation of your past actions about this (dates, how you notified them, who you talked to, photos, etc) and all future interaction.
Also, since you do not have any way to cook and the apartment in uninhabitable, you should be given some temporary housing - either another apartment there or an extended stay hotel.

 

[Aramis]

The proper, and "required" thing to do is to report the incident to your own liability insurer. It is a condition of receiving the benefit of the policy indemnity, including a defence to the described claim the condo corp seems prepared to make. One should not engage a lawyer directly to deal with something like this as it could end up jeopardizing your policy coverage. The insurer has both the duty and the right to defend any claim that falls within the coverage grant. If you do not afford them their rights by trying to deal with the matter directly, it is a problem. I would hope that any lawyer that might be approached in a situation like this would give this same direction rather than running with the matter but, I have seen it happen and it is not pretty.

 

[folly]

As a mom and pop landlord....

 

[Stormy Kromer]

Listen to Aramis.

All you need to do is contact your Renters' Policy insurer.