My Tenants Trashed My House

The insured bought a house in Oregon and took out insurance under a 2011 ISO HO3. He lived there for a month, but then moved back to California and started renting out the Oregon house to a local couple. Six months later, the couple disappeared with no trace and the house had been trashed. Walls were dirty; carpet was dirty; graffiti in the bathroom, hole in the bedroom wall; bottles and cans everywhere; dog urine. The insured wanted his homeowners insurer to pay for a full Coverage A cleanup and restoration. Notable Timestamps [ 00:16 ] - The homeowner rented out his house, then returned to significant damages from absentee renters and is seeking coverage for cleanup and restoration. [ 01:15 ] - The real question is, what happened to the tenants? Could it be… aliens? No. [ 02:57 ] - If the homeowner wasn't renting at the time of the insurance application, there was no misrepresentation. [ 04:05 ] - If the insured didn't reside there, is the house the "residence premises?" It's disputed among the courts, but not an issue in Oregon. [ 05:20 ] - Landlords should expect normal wear and tear which is not covered, but vandalism is covered. [ 08:32 ] - Dog urine may be considered a pollutant which is excluded, but if it's vandalism, that's a Coverage C Peril and likely covered regardless. [ 09:39 ] - What about questionable fashion choices, a tenant painting a wall red, or rainbow-colored? If it affects market value and ability to rent it, that could be a direct physical loss. [ 11:30 ] - Vandalism is a Coverage C Peril, but excluded under Coverage A if the home has been vacant more than 60 days.  [ 12:15 ] - Which state law applies? In this case, the home was in Oregon, so even if the insured was living in California, it's likely Oregon law will apply. [ 13:24 ] - Tim provides a recap of the scenario and the points above. Your PLRB Resources Coverage Question - Tenant Damage Can Rise to the Level of Vandalism/Malicious Mischief - https://search.plrb.org/?dn=87158 Q&A - Damage By Tenants - https://search.plrb.org/?dn=38442 Coverage Question - Tenant Hoarders: Vandalism or Wear and Tear? - https://search.plrb.org/?dn=87102&src=gsa For more on the vandalism exclusion, see: https://www.plrb.org/documents/vandalism-vacancy-ho126/ Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/container.cfm?conlink=sec/cq/default.cfm) at no additional charge to you or your company. Subscribe to this Podcast Your Podcast App - Please subscribe and rate us on your favorite podcast app YouTube - Please like and subscribe at @plrb LinkedIN - Please follow at "Property and Liability Resource Bureau" Send us your Scenario! Please reach out to us with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to [email protected]. Legal Information The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate. Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).