Hundreds of residents evacuated from the Rialto Apartments in Orange County face mounting hotel bills and uncertainty over renters insurance coverage as the building remains closed due to structural integrity concerns. The apartment complex and retail shops on the first floor were evacuated Thursday morning after officials deemed the building unsafe, leaving residents scrambling for temporary housing while paying out-of-pocket expenses.
“We’re in complete limbo,” said Ross Ruppel, who is staying in a hotel with his family after being forced from his apartment. Ruppel filed an insurance claim immediately but was told his coverage depends on the final determination of what caused the structural problems. “So right now I am completely at risk for all of the expenses that I’m out right now, they said we need the engineer’s report, we need the absolute final cause of this to trigger your coverage,” he said of his conversation with his insurance provider.
The insurance uncertainty has created additional stress for displaced residents already dealing with the evacuation. “She even said you’d better hope it’s a sinkhole. You’re covered for that,” Ruppel said about his insurance representative’s response. “That was … that was … sorry. Just the glibness of it was really, like, really hard.” Another resident identified only as Bill said his insurance arranged hotel accommodation but expressed concern about long-term coverage. “That is exactly our concern and our worry,” Bill said.
Erika Dameron, who was among those trapped inside during the evacuation, described waking up around 4:40 a.m. to alarming sounds throughout the complex. “It paranoied me to the point that I set up in a bed and started crying,” Dameron said, adding that she and her family could not open their patio door to escape. Doorbell camera footage captured Orange County Fire Rescue using a sledgehammer to pry open apartment doors that were stuck during evacuations after keypad codes failed to work due to malfunctioning locks. “We thought we were gonna die,” Dameron said, reflecting on the uncertainty as they were freed.
The financial burden is significant for residents like Dameron, who pays $2,100 in monthly rent and is now spending an additional $2,300 to stay in a hotel through the end of the month. Matt Landis, another displaced resident, described the mounting costs: “I have to cover temporary housing, laundry, food, shelter-everything you take for granted when you rent a home.” Many tenants were required to carry renters insurance before signing their leases, but coverage varies significantly. “The only guidance we’ve been given is to contact our renters’ insurance,” Landis said.
Tanya Rodriques, owner of Evolve Insurance Group in Maitland, explained that coverage varies policy to policy, with some covering loss of use of rental units with specific dollar amounts. “That’s the amount of coverage that you would have to pay for, you know, an Airbnb, a hotel or maybe to rent another unit until yours is ready to move in,” she said. Insurance agent Tom Cotton noted that many renters may qualify for reimbursement under “loss of use” coverage, which typically applies when rental properties become uninhabitable. “Although they might not have had any damage in their unit, their building might be uninhabitable,” Cotton explained. “That’s where loss of use comes in.”
Ruppel’s policy illustrates the complexity of renters insurance coverage, stating it would cover collapse but specifying that a building still standing isn’t considered collapsed even if it shows evidence of cracking, bulging, sagging or bending. The policy covers volcanic eruptions but not water damage, highlighting how coverage depends entirely on the determined cause of the structural problems. Cotton said most policies cover between 3% and 5% of a renter’s personal property coverage amount for loss-of-use claims, and while policies often exclude structural defects or maintenance issues, they typically cover natural causes like sinkholes and municipal evacuation orders.
Northland, the apartment complex owner, confirmed that experts are conducting unit-by-unit inspections across 200 apartments to understand the extent of damage and determine when residents might safely return. “This is a fluid situation, and we are working across several fronts,” the company stated. “Engineers have been on-site since yesterday and are evaluating conditions on a unit-by-unit basis across 200 apartments and the building overall to better understand the situation and determine next steps.” A Northland representative did not provide immediate answers about resident reimbursement or rent proration, stating the company’s current focus remains on resident safety.
Experts recommend displaced residents keep all receipts and records related to temporary living expenses for insurance claims. Rodriques encouraged people to go over their renters policies carefully and maintain documentation of all evacuation-related costs. The building remains taped off while structural engineers continue their evaluations to determine the timeline for potential resident return.