Legal Rights After Property Damage in Illinois

The Daily Herald reported (on June 25, 2025) that on December 6, 2024, a garbage truck fire and explosion “rocked” Arlington Heights, Illinois. The blast made international news when it happened. In June of 2025, the newspaper reported that property owners who suffered damage due to the fire/explosion are still waiting for repairs to their homes.

Several homeowners suffered extensive property damage. Six months later some of the homeowners still have not obtained approval for the repairs they need. Two other homeowners had to wait five and six months, respectively, before they obtained approvals.

The reasons for the delays are twofold:

• Part of the delay is due to the insurance company for the homeowners delaying approval of the repair estimates.
• Another part of the delay is that the insurance company for the owner of the truck (the party ultimately responsible for the delay) is blaming the insurance company for the homeowners. The insurance carrier for the truck owner claims it can’t authorize payment until the homeowner’s insurance company authorizes the repair estimates.

How did the garbage truck fire/explosion happen?

The explosion occurred when “compressed natural gas cylinders atop the truck violently ruptured, peeling off siding and roofs from the nearby homes, shattering windows, deploying car air bags, and sending truck parts and other debris several blocks away.” One homeowner said, “I was walking toward my house when the truck blew. It was terrifying. … Pieces of metal were projectiles everywhere.”

The homeowner, a teaching assistant at a nearby elementary school, said another scary garbage truck fire occurred at the school, six months to the day after the initial garbage truck fire. The truck driver “dumped the burning contents on the street and firefighters were able to put it out.”

The Arlington Heights Fire Department investigated the Dec. 6 fire and found “mechanical failures on the Groot truck, which was unable to dump its load or activate any of 10 pressure relief devices that would have emptied the vehicle’s five fuel containers.” Fire Chief Lance Harris “attributed the fire and blast to a lithium-ion battery collected during recycling pickup.” The Arlington Heights community is now informing residents where they can drop off any lithium-ion batteries they have.

Mary Battin, the owner of a three-bedroom home, states that she’s still working to have more than $100,000 worth of repairs made – repairs that her insurance company covers. There are still cracked walls and ceilings. Windows are still boarded, and corner frames still need repairs.

The explosion shattered four windows, ripped off siding, separated ceilings and baseboards from walls, popped out nails, cracked walls and ceilings, and put gaping holes in the garage and fence. The house quickly shifted back and forth — like a “concussive wave,” she said — though structural engineers don’t believe the foundation is compromised.

She obtained two estimates for the damage to her property. The general contractor she chose provided an estimate of $113,000. The general contractor for the insurance company provided an estimate of nearly $80,000. Ms. Battin stated that her insurance company didn’t approve either estimate, and now (six months later) recommends that a restoration firm review the damage.

The homeowner’s portion of her insurance was “underwritten by Homesite Group, a Boston-based firm that was acquired by American Family Insurance in 2014.” A spokeswoman for Homesite said “We are aligned on next steps with the insured for their claim and are actively working towards a swift resolution.” For good reasons, Ms. Battin is not convinced.

Ms. Battin said that ESIS, Groot’s insurer, has not been cooperative either. The insurer failed to respond until Ms. Battin attended an Arlington Heights village board meeting. Subsequently, an official from Groot told Battin that he reached out to ESIS, but that “nothing is being held up on their end, that your insurer will have to approve the quotes that you have received.”

Ms. Battin is caught in the middle. ESIS says they need to hear from her homeowner’s carrier, instead of directly agreeing to pay for the work. Her homeowner’s carrier is delaying the approval. Generally, the homeowner’s carrier pays for the damage and then seeks subrogation from the responsible party (in this case, Groot). While Groot’s insurer ultimately may be liable, it generally has no legal duty to directly pay homeowners until liability is established or settlement is reached. Homeowners typically must pursue their own insurers first, who then seek reimbursement through subrogation.

Groot, through an assistant district manager, said they’re still waiting for the final repair estimate from the homeowner’s carrier.

“I guess the bad news is that it’s still livable. Or is that the good news? I’m not sure,” Ms. Battin wondered.

Who is liable for property damage due to fires and explosions in Chicago?

The homeowner’s insurance company is liable for damages based on the terms of the insurance policy with the homeowner. The trucking company is liable for its negligence in causing the lithium-ion fire/explosion.

Generally, the insurance carrier should pay temporary damages if the homeowner needs to relocate. These damages include the cost of new lodgings and the additional costs for living in a new location, such as the cost to dine out.

The insurance company should pay for the cost of necessary repairs. The repairs should restore the property to the condition it was in prior to the explosion, and cover the cost to meet any building code and fire code safety requirements.

Generally, as we discussed above, the insurance company pays the homeowner and seeks reimbursement/subrogation from the trucking company.

Bad faith negotiation

Both the insurance company for the homeowner and the insurance company for the trucking company should investigate the damage and make prompt payment. A six-month delay in payment is inexcusable. Our property insurance lawyers hold insurance companies accountable when they negotiate in bad faith. Bad faith negotiation includes improper delays, taking unwarranted legal and factual positions, refusing to answer requests for information from the homeowner, and other improper actions.

When insurance companies act in bad faith, we demand compensation for:

• The cost of reasonably necessary repairs, even if the cost exceeds the policy limits
• Interest due to the delay
• Legal fees
• Any other damages such as the inability of the property owner to enjoy their property during the delay
• Any injuries that may occur because the property owner (and family) live in unsafe homes

At Gainsberg Injury and Accident Lawyers, we understand the complex challenges involved in obtaining insurance proceeds after an accident. Our Chicago property damage lawyers hold insurance companies accountable when they fail to pay the damages their policy covers, blame other defendants, or act in bad faith. Contact us today to schedule a free consultation.