Legal Question in Insurance Law in Illinois
Loss of Rents
We had to change insurance companies. We knew this agent personally and showed him our old policy. We told him we wanted the same coverage with him. We had a fire, tenant's neglect. Found out we did not have loss of rents as we did in our old policy. Asked agent, he said it would have been too expensive. He was trying to save us some money. It also took insurance company 3 months to give us a check. We had to finally go to some higher ups. In the meantime, we have had a real financial hardship with loss of over $30,000 in rents. Do we have any recourse? Can we sue the insurance company and/or the tenant. We haven't had any contact from that tenant. It is like she disappeared. We gave back deposits to the tenants in the apartments that were destroyed and partial rents. We have since changed insurance companies.
1 Answer from Attorneys
Re: Loss of Rents
You may well have a claim against: the tenant
and his/her insurer (if they had insurance),
your agent for failure to properly procure
insurance coverage, or your insurance for failure to
provide proper insurance coverage. Your tenant probably did not have insurance. They rarely do. Your insurer will probably take the position that they relied on your agent. Your likely remedy lies with a claim against your agents own insurance coverage for his negligence. Agents are generally covered by an errors and ommisions policy. Please contact me to discuss whether you
wish to pursue your claim.
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