How a small fire becomes a multi-tenant loss

Many retail and office suites share a roof, an open area above the ceiling tiles, and sometimes rooftop heating and cooling units serving more than one space. Smoke from a contained fire in a restaurant kitchen or a storage room can drift above the dropped ceiling into neighboring suites. Water from sprinklers or hoses runs along the slab and under walls. A tenant who saw no flames may still have smoke-coated inventory, wet carpet and a ceiling grid that needs cleaning or replacement.

The recovery then involves several parties at once: the landlord, the tenant where the fire started, the affected neighbors, and each of their insurers. Who handles which repair depends on leases more than on where the damage is.

Typical division of responsibility

Leases vary widely; read yours and ask the landlord for theirs to confirm.

Often the landlord's side

  • Roof, structure, exterior walls and the building shell
  • Shared systems such as fire sprinklers and alarm panels
  • Demising walls between suites, depending on the lease
  • Common areas, corridors and restrooms

Often the tenant's side

  • Tenant improvements such as interior walls, flooring and fixtures, depending on the lease
  • Inventory, furniture, equipment and records
  • Business income lost while the suite is closed
  • Cleaning and replacing the tenant's own contents

First steps for an affected neighboring tenant

  1. Stay out until cleared

    Wait for the fire department and the landlord to confirm the space is safe to enter.

  2. Notify your insurer and landlord

    Report the loss even if the fire was not in your suite. Give written notice to the landlord as your lease requires.

  3. Document before cleanup

    Photograph inventory, ceilings, floors and equipment, and set aside damaged stock for the adjuster to see.

  4. Ask about the shell

    Ask the landlord what work they will handle on the shell and shared systems, and on what schedule.

  5. Track lost business

    Keep records of closure days, canceled orders and extra expenses for a business income claim.

Questions for the landlord or property manager

  1. Which parts of my suite does the landlord's insurance cover?
  2. Will the landlord's contractor clean the area above the ceiling and the HVAC serving my suite?
  3. Does my lease abate rent while the suite cannot be used?
  4. Who decides when the sprinkler and alarm systems are back in service?
  5. Will I get a schedule for repairs to shared areas?

Common questions

Can I reopen while repairs continue next door?

Possibly, if the building systems serving your suite are working, the space is clean, and the city and fire officials have no restrictions. Ask the landlord and check whether a reinspection is needed.

General information for Westminster, not a quote or professional advice. In an emergency, call 911.