My friend, Joe, was informed by a tenant in one of his buildings early Sunday morning that a burglar broke into the apartment building and had stolen money from the coin operated washers and dryers. Not only was the door and doorjamb broken, but the damage to the washers and dryers was severe and a few needed to be replaced. Joe was concerned when he reviewed his policy and found that no content coverage was provided.
I explained to Joe that most landlord policies will include coverage for landlord’s owned equipment to care, equip, and maintain the premises. This can include appliances in the apartment units such as stoves, refrigerators, and washers and dryers. Coverage also applies for lawn care equipment such as mowers, garden tools, and the like.
For example, if he owned a strip shopping center the same scenario would apply. The building owner regularly handles a great deal of his own maintenance in the building. He maintains a storage room with tools and equipment; such as floor waxing machines, heavy duty vacuum cleaners, ladders, and other items related to the care and maintenance of the building.
I advised Joe that he does indeed have coverage for the damage to the washers and dryers, less the $1,000 deductible. The deductible applies first to the loss and then the insurance company will pay the remainder of the loss. If Joe had separate content values, a separate deductible may apply.
Joe called me a few weeks later and advised that the claim settlement process went very well. The damages to the building and the washer and dryer settled for just under $5,000 less his deductible.