When must a security deposit be returned to tenant following a fire in the unit?

Full question:

This is about rental property and security deposite refunds.On Dec 12,2009, there was a large fire. The Fire Marshal said he could not determine the cause...it may have been electrical. My insurance co Allstate has a 'Cause' task team investigateing. My 30 days will be up in days to send her refund back or can I wait past the leagal 30 day due to the ongoing investigation and do I have to give a refund? I live in Ohio and my rental unit is in DE.

• Category: Landlord Tenant
• Subcategory: Security Deposit
• Date: 04/07/2025
• State: Ohio

Answer:

In Delaware, a tenant must leave a forwarding address, in writing, and return his keys to the landlord. Within 30 days, a landlord must either (1) return the security deposit or (2) send the tenant a list of damages, the cost or repairs along with copies of all receipts and the remaining amount, if any, of the security deposit. If a landlord fails to do either of these within 30 days, he gives up his right to withhold any portion of the security deposit. The tenant may sue to recover the deposit without recourse or you can sue for double the amount for which the landlord can counter sue for damages.

When the property is damage or destroyed by fire, the following Delaware statute may be applicable:

§ 5309. Fire and casualty damage; landlord obligation and tenant remedies.

(a) If the rental unit or any other property or appurtenances necessary to the enjoyment thereof are damaged or destroyed by fire or casualty to an extent that enjoyment of the rental unit is substantially impaired, and such fire or other casualty occurs without fault on the part of the tenant, or a member of the tenant's family, or another person on the premises with the tenant's consent, the tenant may:

(1) Immediately quit the premises and promptly notify the landlord, in writing, of the tenant's election to quit within 1 week after vacating, in which case the rental agreement shall terminate as of the date of vacating. If the tenant fails to notify the landlord of the tenant's election to quit, the tenant shall be liable for rent accruing to the date of the landlord's actual knowledge of the tenant's vacating the rental unit or impossibility of further occupancy; or

(2) If continued occupancy is lawful, vacate any part of the premises rendered unusable by fire or casualty, in which case the tenant's liability for rent shall be reduced in proportion to the diminution of the fair rental value of the rental unit.

(b) If the rental agreement is terminated, the landlord shall timely return any security deposit, pet deposit and prepaid rent, except that to which the landlord is entitled to retain pursuant to this Code. Accounting for rent in the event of termination or apportionment shall be made as of the date of the fire or casualty.

70 Del. Laws, c. 513, § 2.;