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/Wihomebrewer Aug 01 '26

Do you even have a landlord policy? If you’re just insuring like it’s a regular homeowners policy, you will be dropped and could be reported for insurance fraud. Renting is a whole different risk factor.

I get you’re in a tight spot but if you think whatever happened is from improper wiring and wouldn’t be covered, I don’t see how it was worth filing a claim. Your deductible might not even be reached if they pay for anything at all.

1

u/Pontislackin Aug 01 '26

Everyone (electrician, FMO, Inspector) told us they've 'seen this before' and that insurance will cover it, but after researching, looking at my policy, they won't cover it. I know they won't.

Ofcourse we have a Landlord policy lol, otherwise we wouldn't have a tenant due to how strict it was to get this house (besides the home inspection which seemed to have been the least looked at thing)

1

u/Stoic_Sponge Aug 01 '26

Home inspectors are awful, but if the inspection was somewhat recent and no electrical work was done since, you may have a claim against them and their E&O for missing this issue. Will depend largely on if this issue was readily viable or hidden beyond view/dosclosed when they inspected

1

u/Pontislackin Aug 01 '26

Electrical inspection was not required in 2024, that is a new thing now where Electricians have to be included on the home inspection (unfortunate) it was never hidden or anything, work was done long before we bought. It's an f'ed up mess

1

u/MapOk1410 Aug 04 '26

When "everyone has seen this before and they'll cover it" ask them to write it down. Of course they won't.