What to Do if Your Tenant Accidentally Causes a Fire

After calling 911 and evacuating the property, notify your insurance company and collaborate with your tenant.



A landlord's insurance typically covers accidental fire damage, liability, medical expenses, and third-party liability claims arising from the tenant's negligence.

However, your insurer may contact your tenant's insurance company or seek compensation if they lack coverage.

Accidents happen, but recovery becomes easier when both the landlord and tenant know their respective responsibilities, insurance procedures, and legal implications.

First, let's discuss property values. Generally, there's a significant impact on property prices after a fire occurs.

However, the impact may vary depending on factors like the severity, cause of the fire, location, and property insurance coverage.

But more than the dollars' worth of damage, escaping the flame is ultimately a matter of life and death.

An article from the National Fire Prevention Association states, "You may have as little as two minutes (or even less) to safely escape a typical home fire from the time the smoke alarm sounds."

Therefore, preventing and addressing accidental fires starts with awareness.

Definition and Causes

Accidental fires, by definition, result from causes that do not involve deliberate human actions to ignite or propagate them, as opposed to arson.

After speaking with tenants and assessing the scene, your local fire department will likely determine the cause of the rental property fires.

The most common causes of rental property fire damage include:

• Electrical Malfunctions: Faulty wiring, overloaded circuits, or neglected appliances.
• Cooking Fires: Unattended cooking or flammable materials near open flames.
• Smoking Materials: Improperly extinguished cigarettes, cigars, or pipes.
• Negligence: Unattended candles, improper cigarette disposal, or children playing with fire.
• Natural Causes: Fires triggered by lightning strikes or wildfires.

If an accidental fire damages the apartment building or attached structures, a tenant's security deposit can't be used for expenses, and rent must still be paid.

Common Types: Grease Fire and Others

A common accidental fire caused by tenants is a rapid-spreading grease fire. This is especially common in rental properties and is classified as a Class K fire.

When things happen in the kitchen involving flammable liquids like grease, oils, and fats, you get a Class K flame.

Fires are categorized into five classes based on their fuel source:

• Class A: These are common fires ignited by wood, paper, fabric, and plastics.
• Class B: Involving flammable liquids and gasses like gasoline and propane.
• Class C: Common in offices with electrical equipment, like data centers.
• Class D: They involve metals like titanium.
• Class K: Typically fueled by cooking oils
  

Tenant Responsibilities and Obligations

Tenants need to follow the rental agreement both parties have signed.

In case of fire damage, they might have to pay for the damages they cause, including property repairs and replacements—depending on their lease agreement and state laws.

Depending on the renters' insurance policy, they may also cover third-party property damages.

It's best to get insurance before renting a property. This can help cover the costs of any liabilities, damages, and the loss of personal belongings.

Like landlord insurance, it serves as a tenant's legal and financial safety net in case of fire-related liability claims.

Landlord Responsibilities and Rights

The landlord is responsible for fixing structural damages and making the property habitable—meeting all safety codes and regulations imposed by the local fire department.

However, a landlord's responsibility depends on the cause of the fire, and this will also determine if their landlord insurance will cover the repair costs.

If tenants find that a landlord's negligence causes a fire, the landlord may be liable for the tenant's inconvenience, damaged personal property, lost wages, and temporary rental payment.

The landlord's insurance will cover the costs if it's due to faulty structural elements.

If tenants caused the fire, the insurance company may pursue their renter's insurance or seek compensation if they lack rental insurance coverage.

Jurisdiction-Specific Laws: California and Beyond

Additional fire accident-related laws depend on the city or county where the rented property is located.

In California, for instance, all property owners should install smoke alarms.

The smoke alarm law requirements vary depending on the rental property or leasehold estate type, how many units it has, and how tall it is.

Meanwhile, New York has a law compensating police officers and firefighters who're injured or killed due to someone else's actions, like negligence or intentional harm.



They or their families can seek compensation from that person or entity.

What Renters Insurance Covers

It typically covers damage to the tenant's personal property, liability for accidents, and additional living expenses if the rental unit becomes uninhabitable due to fire.

It can also provide coverage for theft, water damage, certain natural disasters, bodily injuries, and more in a rented property.

Your insurance policy's loss of use coverage may provide funds for temporary housing while the rental property or new housing is rebuilt after the tragedy.

What Homeowner's Insurance Covers

Landlords should have homeowner's insurance, which can cover structural damage to the property caused by fire.

This insurance includes assistance for the landlord's repair efforts, including the cost of tearing down, cleaning up, and rebuilding the main structure and outbuildings.

Liability coverage is also part of the package. This means it will cover medical and legal liability costs if someone gets hurt within your property premises.

The Risks of Not Having a Renter's Insurance

Tenants who do not have renters insurance are at risk of shouldering the financial burden of replacing their damaged possessions and potential liability claims.

Your belongings may also be covered by such insurance claims if they're damaged or stolen.

For instance, if a blaze wrecks your belongings, you'll have to cover the repair and replacement costs out of your own pocket.

Worse, if you lack insurance, the property owner may even resort to evicting you.

Most landlords often ask tenants to get their own insurance to protect themselves. This insurance covers the tenant's responsibility for property damage, belongings, and the landlord's deductible.