Question for the slum lords
 

I have kept my parents house in Iowa and am currently renting it to a long time family friend. It is located in a town that fortunately has not had a tornado, but there has been water and sewage backup in the basement. I do have an Aunt (she is fine) that lost her house in the Parkersburg tornado.

I have a rental policy on the house, but sewage backup and water issues are not covered - not even an option with State Farm for a rental.

It's not going to be that big of a deal to get this one cleaned up, but I'm wondering if it's time to shop for another home ins. co., or if this is a typical thing rental owners have to deal with.

Anyone have similar experiences?

I have never seen a policy that covers water and sewage backup.

This is not normally something you would ensure against as it's a maintenance issue.

My Ins co in NY paid out just S of 10K when I had a sewage issue in my crawlspace.

600sq ft 3 inches deep in doo doo.

That was pleasant.

I can't help you about your insurance possibilities, but you should be able to install proper back-flow-prevention, and/or external "relief" valves to prevent (or at least "limit") serious back-up and damage in the future.

And just how much does a backflow preventer cost?

A hell of a lot less than the cost to clean up afterwards!

Thanks for the ideas. I do have backflow protection for the drains in the basement and my father always had a 4x4 handy to wedge against the ceiling to plug the basement toilet for just such an occasion. However, my tenant had forgotten about that information - can't blame her, she's pushing 80. I should have paid more attention to the weather happenings around there and made sure someone got in there and plugged the toilet for her. After all, that was my job as a kid growing up there.

I'm more than willing to pay the cost of cleanup when compared to what others in Iowa are currently going through!

State Farm does have water/sewage coverage available for personal dwellings, just not for rentals.

I am relatively new to the buisness, , ( not a slumlord though) but have been through something like this a few times already. and I think other than major damage, fire, tree through the roof, it may be best to suck it up. Even if you find another insurance co that would cover it, after a claim or two , you will be dropped, and it will become hard to get insured from other companies as well. I just keep fire and liability insurance, and a truck full of tools, and say my prayers every night. Also. the rates go up very signifigantly for extra coverage if you can get it. Like I said, I have only been the buisness for about 6-7years, but I think this is a hands on buisness. Best of luck . There are a couple of great books you can read that have been real helpful to us one is the section 8 bible, real good read, and the guys are kind of funny. Mostly geared towards section 8 renatls, but tons of good tips, etc for landlords
Hey best of luck , Its a tough racket, but, you can make some money if you are willing to put your back into it.

i know a high powered city CPA who says sec-8's are great.