being sued by insurance company

[mkh]

What is the name of your state? NC

Last year, my husband and I were renting a house. I accidentally started a fire in the kitchen (used the wrong pan when cooking), causing significant damage to half of the kitchen. We talked with the real estate company that was managing the property, and also with a representative from the owner's insurance company. We were asked to pay the owner for the cost of the deductible ($600), and everything would be taken care of by the insurance company.

We paid the $600. 6 months later, we got a letter from a collection agency stating that the insurance company wanted approximately $10,000 from us, to cover the cost of repairs (the estimate we were originally given by the insurance rep was $5000). We wrote back saying that we didn't agree that we should have to pay, and wanted to contest it (we spoke to a lawyer and this is what he advised us to do).

Two days ago, we received a certified letter telling us that the insurance company is now suing us for $15,000 in damages, plus 8% interest, plus "reasonable attorney fees."

Has anyone ever heard of something like this? I have to add that the stove was defective when we first moved in, and we notified the property managers. The owner was supposed to come look at that and other problems we noticed, but never did.

We have a lawyer; we meet for a consultation Monday afternoon. I'm really stressed about this. We're not rich people - we're both lower-rank military - and I have no idea where we could get $15,000+ if we don't win this. I don't even know how we're going to pay our lawyer. We bought a house last year and I hate to think that we might have to sell it...

If anyone has been in or knows of a situation like this, please let me know what the outcome was... I didn't even know insurance could do this to us!

p.s. We didn't have renters insurance at the time because we had been told it was for personal property, and since we were young and newly married, we didn't own anything worth insuring. Since then, I've found out that if we had it, it would pay their insurance back... but it's too late now.

 

[Just Blue]

What is the name of your state? NC

Last year, my husband and I were renting a house. I accidentally started a fire in the kitchen (used the wrong pan when cooking), causing significant damage to half of the kitchen. We talked with the real estate company that was managing the property, and also with a representative from the owner's insurance company. We were asked to pay the owner for the cost of the deductible ($600), and everything would be taken care of by the insurance company.

We paid the $600. 6 months later, we got a letter from a collection agency stating that the insurance company wanted approximately $10,000 from us, to cover the cost of repairs (the estimate we were originally given by the insurance rep was $5000). We wrote back saying that we didn't agree that we should have to pay, and wanted to contest it (we spoke to a lawyer and this is what he advised us to do).

Two days ago, we received a certified letter telling us that the insurance company is now suing us for $15,000 in damages, plus 8% interest, plus "reasonable attorney fees."

Has anyone ever heard of something like this? I have to add that the stove was defective when we first moved in, and we notified the property managers. The owner was supposed to come look at that and other problems we noticed, but never did.

We have a lawyer; we meet for a consultation Monday afternoon. I'm really stressed about this. We're not rich people - we're both lower-rank military - and I have no idea where we could get $15,000+ if we don't win this. I don't even know how we're going to pay our lawyer. We bought a house last year and I hate to think that we might have to sell it...

If anyone has been in or knows of a situation like this, please let me know what the outcome was... I didn't even know insurance could do this to us!

p.s. We didn't have renters insurance at the time because we had been told it was for personal property, and since we were young and newly married, we didn't own anything worth insuring. Since then, I've found out that if we had it, it would pay their insurance back... but it's too late now.

The fire was caused by you...the insurance company wants you to pay them back for the amount they had to pay to the property owner....Why should the insurance company eat that amount due to your negilance?...

 

[Shay-Pari'e]

p.s. We didn't have renters insurance at the time because we had been told it was for personal property, and since we were young and newly married, we didn't own anything worth insuring. Since then, I've found out that if we had it, it would pay their insurance back... but it's too late now.

You answered your own question.

 

[mkh]

First, the stove was defective. It was defective when we moved in and the owner refused to do anything about it. There is nothing I could have done to prevent this from happening. It was purely an accident, and if the stove had been fixed as we requested (requested multiple times, and we have documentation), this would never have happened.

As for renter's insurance, we did look into that when we first moved in. We were told that renter's insurance would only cover our personal property, and as stated, we didn't really own anything worth insuring (not even furniture or anything). We were never told by our insurance company that renter's insurance would cover us in a situation like this. Obviously we were given bad/incomplete information...

Also, I will state again that we were told, by the company now suing, the following:

1. The owner wanted us to pay the deductible, but we would not be responsible for anything else - after all, that's what insurance is for.

2. Estimated cost of repair was $5000. They then asked for $10,000, and are now asking for $15,000. I wouldn't be surprised if we go to court and they tell us they want $20,000. It was a small fire - the estimator said the only things they would need to replace would be the stove and a few cupboards, plus do some painting and have the carpets cleaned. There is no way that could possible cost $15,000.

But obviously I am only going to be flamed by people who won't read the entire post and look at the complete situation.

All I wanted to know is if anyone had heard of this happening. My parents are landlords and one of their tenants caused a fire once, but the tenant just paid them back for the deductible and that was the end of it.

 

[Shay-Pari'e]

(QUOTE)But obviously I am only going to be flamed by people who won't read the entire post and look at the complete situation.(QUOTE)

What do you WANT to hear? I read the entire situation that you went "on and on" about, and it doesn't change the answer.

psst, how many burners are on a stove?

 

[efflandt]

First, the stove was defective. It was defective when we moved in and the owner refused to do anything about it. There is nothing I could have done to prevent this from happening. It was purely an accident, and if the stove had been fixed as we requested (requested multiple times, and we have documentation), this would never have happened.

You have not yet said what actually caused the fire ("defective" is insufficient data). Was there a gas leak or bad wiring or what? Whatever it was, you apparently knew about it and used it anyway, so that would appear to make you liable. Wrong pan? My guess is that you started a grease fire and were not cool headed enough to take it off the heat and put a lid on it (like my mom did when that happened).

Were fire repairs actually completed (so cost is known) or just estimated?