forest fire rips through property - Posted by Allen
Posted by Allen on July 13, 2002 at 17:08:57:
I have a rental property in a mountain subdivision in Colorado. One of this summer’s many fires went through the subdivision. The firefighters where able to keep the fire low and out of the tree tops. Thus they were able to save all of the houses in the subdivision.
The forced evacuation of the area lasted for seven days. The tenets renting my house decided not to return. The lease states that if the house becomes unihabitable for any reason, the lease can be terminated. Thus, I am left with a vacancy on a property that has lost most of its attractiveness – not to many folks looking for mountain retreats in burnt out forests.
The insurance paid loss of rents for the forced evacuation period. They will pay no more because the adjuster declared the house habitable. I don’t see how I can argue the point being that there is no damage to the house - can’t even detect smoke odor from inside. Insure has also paid about $7,000 for tree damage and that does help to take some of the bite out of the loss. Nevertheless, that isn’t sufficient to cover loss of rents for even one year and doesn’t come close to covering loss of equity. If I where to opt for selling at this point, I expect that I would have to seriously discount the price.
Does anybody have any suggestions as to how this situation could be salvaged? Any thoughs or suggestions are greatly appreciated.