When Insured's Damage Affects Other Side of Duplex
December 27, 2017
Currently working on a fire loss that occurred in our insured's tenant occupied duplex. The damages will likely be a total loss and require demo. The other half of the duplex is owned by another individual and sustained smoke and water damage. The smoke and water claim for the other half is being handled by a public adjuster with a different insurance company. The duplex shares a common roof and basement. The basement is separated by a frame wall and will require concrete or block wall to retain back fill. It is assumed the block wall is an incurred cost for our insured since it is needed to retain back fill.
Does our insured have a responsibility to make repairs to the non-owned portion of the duplex?
Tenant dwelling is insured under AAIS Form FL-2. Unknown coverage on the other half of the duplex.
Kentucky Subscriber
If the duplex is split ownership between two parties, I don't see why the insured would be responsible for damage to the other half. Both properties experienced a fire loss to some extent, so their respective coverages should handle it.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.