Does Landlord Insurance Cover Tenant Damage

The quick short answer is that Landlords and Renters should buy insurance separately to fully cover tenant damage. If your tenant caused an accident and it doesn’t fall under the landlord insurance, you can be reimbursed by the tenant’s renters insurance.

Landlord insurance is a must for leased property owners and in today’s article, we will explain what you need to know about landlord insurance coverage.

A common question we get at Portland Insurance is, “Does landlord insurance cover tenant damage?”

The types of damage that typically cover landlord insurance are:

• Permanent and temporary tenant damage to personal property
• Tenant caused damage to the dwelling unit
• Loss of rental income

Before we jump into the article, remember that at Portland Insurance we are here to make sure you get the right coverage for your property. If you want help discussing your landlord insurance coverage options then compare quotes.

What Does Landlord Insurance Cover?

With a landlord’s insurance policy, you will be protected against any rental-related damages. This type of insurance is similar to homeowners insurance, but it is tailored toward protecting your rental property.

Landlord insurance protects your property from unexpected and accidental damages caused by covered losses. Protecting the dwelling (the structure of the property) itself is one of the main focuses of this type of insurance. This type of insurance will also cover your personal property and items in the home for tenants to use.

Some personal liability protection is often included with landlord insurance policies as well. So, if someone gets hurt on your property and sues you, you may be protected by liability coverage. However, if a renter on your property has a guest and gets hurt, the costs will probably be covered by the liability coverage on the renter’s policy.

Always have a conversation with your insurance agent about the limitations of your policy and how much you should insure your property for. You’re the property owner, so you’ll be responsible for any damage done by tenants.

What Landlord Insurance Doesn’t Cover

When it comes to landlord insurance coverage, you’ll never be fully protected for every possible damage from a tenant. There are a few exceptions you should be aware of that are in the following list of what’s not covered by landlord policies.

The personal belongings of your tenants are not insured under the landlord’s insurance policy as they are a separate entity. You may want to include a separate requirement in the tenancy agreement that states that the tenant will be required to purchase a renters insurance policy in order to be covered for damage to their property.

Generally speaking, most breakdowns in appliances, wear and tear, and similar maintenance doesn’t typically get covered. However, a few exceptions can be made. For example, some damages from peril such as fire or hail may be covered in your policy.

Malicious or intentional damage to the property is not always covered by a landlord’s insurance. However, you can purchase opt-in riders for extra protection in the event of this type of damage.

Some disasters, such as earthquakes and floods, require you to have a separate policy. You also need one if the disaster is caused by flooding or negligence, so be sure to mention that in your coverage.

When looking for landlord insurance quotes, be sure to check what’s covered by the insurance company. You might also want to explore adding endorsements, like for a kitchen fire.

The insurance company may not payout for the total loss of your house (e.g., in the event of a complete kitchen fire). So, you may want to consider asking your insurance agent about a personal umbrella policy that could kick in an event like this.

Does Landlord Insurance Cover Tenant Damage?

It depends. Landlord insurance usually covers the dwelling, so if a tenant has an accident in your house, causing unintentional and accidental damage to the structure, it will be covered. If they start a fire in your kitchen for example. However, should they damage the floors or steal your property these events typically aren’t covered by landlord insurance. It just depends on the insurer.

If you are eligible for reimbursement, then the amount will be within your policy limits. You will need to pay your deductible before insurance coverage pays out.

It is also worth noting that security deposits are a common practice for landlords to collect money from their tenants upfront in order to cover possible costs resulting from future damages.

The landlord insurance policy offers protection for many common tenant-related losses. However, it does not cover every tenant situation, so before renting your home, you will want to prepare yourself.

Ask your renters to buy renter’s insurance before they rent to them and ask your insurance company about any additional coverages. You want peace of mind and to get the most out of your rental property, right?

Want help finding the best landlord insurance coverage for your leased residential property or commercial property? Contact us at Portland Insurance to get the best coverage that your property needs.