One of our friendly General Agents located in Northern California has just warned us about their new loss experience.
The General Agent is aware that apartment owners in his area are confronting a new loss experience. Few of the property owners have tenants who were elderly and living alone in his or her unit passed away without being noticed.Only after days or weeks when there are odd odors sipping out from the units or when the tenants’ distanced relatives came to visit them did the property owners aware something unusual had happened.
The property owners broke into the units and only then they found the tenants had passed away days or even weeks ago. The property owners do not have any liability exposure because mostly the cause of death is natural or sickness.
But the afterward cleanup cost and loss of rental income would not be compensated by the insurers of the properties because that kind of cause of losses are excluded from the coverage. The time elapsed before the units could be put back into the market can last for months and the rental income loss and clean up expenditure could be substantial. Besides, it is more desirable if the deceased tenants could be taken care earlier.
We want to share with you what is happening now in the property markets so that you could take precautions action to mitigate the negative effects of the unforeseen incidents.