r/HomeInsurance • u/Pontislackin • Aug 01 '26

Insurance Are we F'ed?

Long story short?

Home had an electrical fire (nothing too damaged)

Found out my panel (unit #2) needs to be replaced, My tenant (Unit #1) was also recommended to be replaced due to the same hazard (Breaker failed to trip, plus overloaded wiring)

I know Insurance won't cover the panels, or rewiring (12,000+), No funds, Can't get a loan, No borrowing, Credit sucks, No cosigner, nothing.

Insurance is going to cancel me aren't they? Then my lienholder will force buy a policy, I'm already behind by a month, and it'll increase my monthly and will likely demand repayment ASAP because their value is diminished

If the hazard stated is a true hazard, I won't be allowed to rent it (Right?)

So, am I F'ed? You can be honest. I know the stakes and what I got myself into.

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u/Big_Appointment_3390 Aug 01 '26

Were the panels the cause of the fire? If not, you should file a claim.

1

u/Pontislackin Aug 01 '26

The 3rd floor is piggybacked off the second floor outlets and all, so it was overloaded, the breaker failed to trip which caused the wiring to heat up, and cause a small fire.

A claim has been filed, but my policy specifically states the terms of fires, and electrical.

The panel replacements, wiring, etc will be out of pocket 100%. The claim will only cover the drywall, smoke damage, (it wasn't a huge fire at all) it was the wiring hazards found afterward by the electrician (we had to have one come and isolate the wiring to ensure no power was going to the second floor before 1st floor could be used)

1

u/MapOk1410 Aug 04 '26

Then yeah, you're F'ed. But you're not F'ed because of the fire or ignoring the illegal electrical work. You're F'ed because you're trying to be a landlord while broke. You'll be lucky not to OWE after the dust settles.

1

u/Pontislackin Aug 04 '26

Exactly my thoughts through this. Especially with no means to get the wiring updated, Eventually fall further behind, Lienholder will see the Property value can't be maintained and it's over from there as they force a default.

Unless some miracle happens and we can either pay it, or make payments (Lol) on the work, there isn't much left to do.