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Real Estate Corporate
We have a corporate apartment in a community and have been unable to rent to our clients due to a ruptured pipe in the the building. As a result, we lost a client who wanted to rent for 4 months. The community does not know what we
lost because they are unaware of what we charge our clients. However, there were several repairs that needed to be made before we can rent out the apartment. In addition, industrial fans were plugged inside of our corporate apartment for several days on our electricity billing. We requested to be included in the insurance claim for compensation due to not being able to rent out our apartment and the usage of electricity. We were only offered a few dollars for compensation and this is an insult. Please advise on our options.
Asked on October 8, 2018 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
IF you can prove that the community was at fault, in not responding to a reported problem with that pipe before it escalated, or in having their maintenance staff or contractor accidentally rupture the pipe, you can sue them for any losses you can prove in court you suffered because of their fault. But you must be able to prove their fault; the community is not your insurer and is not liable or responsible for your losses unless they caused it through negligent (careless) or otherwise wrongful action(s). And if they are not responsible or liable, their insurer is not, either: their insurer pays third parties (e.g. you) when the insured (the community) would be liable to pay.
If you can't show fault, you are limited to what you can get from any relevant (e.g. business interruption) insurance you have.
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