Landlord insurance is an essential consideration for property owners. It protect sudden and accidental property damage as well as the owner’s financial interests. But one of the questions that often arises is, Does landlord insurance cover tenant damage?
This article will explore the answer to this question and provide a comprehensive overview of what landlord insurance covers and what does not.
Does landlord insurance cover tenant damage?
Landlord insurance covers property damage caused by the tenants to the rental property, such as accidental damage to walls, fixtures, fittings, and kitchen fire accidents.
Generally Landlord insurance coverage is limited to sudden and accidental property damage and does not cover intentional or malicious acts. It covers losses related to theft by the tenants and the failure of tenants to pay rent.
If a tenant causes property damage to the property simply by living there, such as worn carpet or fading paint, the landlord’s insurance policy will not cover the cost of repairing or replacing it.
When doesn’t landlord insurance cover tenant damage?
Landlords’ property insurance is similar to homeowners’ policy as it covers renter damage caused by hail, kitchen fire, water, flood, and tenant,
Certain types of tenant damage may not be covered by landlord insurance
Normal Wear and Tear:
Landlord insurance policies typically don’t cover normal wear and tear, which is the gradual deterioration of a property due to its usage over time. Wear and tear damage is considered a natural part of the aging process and is expected in any rental property.
Landlord insurance policies typically exclude coverage for deliberate damage caused by the tenant or their guests. Some of the intentional property damages include:
- Wall writing
- Wall hole
- Intentional spills or stains
Landlord insurance policies typically exclude coverage for tenant property damages caused by unlawful criminal activities such as drug manufacturing or illegal gambling.
Does landlord insurance cover accidental tenant damage
Most standard landlord insurance policies provide coverage for accidental damage to the rental property and its contents (like appliances) caused by tenants or their guests.
- The coverage is normally $25,000 or $50,000 per event. Beyond the coverage limit, the landlord would pay for damage. Tenants usually aren’t covered for intentional damage. Only accidental damage qualifies.
- Before the insurance kicks in, the landlord may have to pay a deductible, such as $500 or $1,000. The policy determines the deductible.
- The tenant need not be careless or reckless for the damage to be covered. A kitchen grease fire or water heater burst would usually be covered. The coverage may be void if the tenant fails to disclose severe damage to the landlord. Any significant damage must be reported to the landlord.
- If the property becomes uninhabitable owing to an insured damage occurrence, loss of rental income is usually covered.
What does landlord insurance cover?
There are many expenses that are covered by landlord insurance. Here’s a closer look at what covered by landlord insurance
Landlord insurance provides Dwelling coverage against financial losses due to damage to the rental property. These dwelling coverage damages include:
- Fires and earthquakes damage
- Hurricanes and hail damages
- property Damage by tenants and their guests,
- water damage from leaks or accidental kitchen fires.
- Freezing pipes
Loss of rental income:
Loss of rental income is also covered by landlord insurance If the rental property is damaged and becomes uninhabitable. Landlord insurance can help cover the loss of rental income while the property is being repaired.
Landlord insurance also provides liability coverage to protect landlords against lawsuits resulting from slip and fall injuries and damages to tenants’ belongings.
Medical payments in case of injury are also covered by landlord insurance. This coverage provides medical expenses for tenants or their guests if they are injured on the rental property.
Personal property coverage:
Landlord insurance provides coverage for personal property owned by the landlord that is located on the rental property. It includes furniture, appliances, and other items used to furnish the rental property.
Does homeowners insurance cover tenant damage?
Homeowner insurance does not cover intentional property damages by tenants. This means that if a tenant intentionally damages the property policyholder will not be able to file a claim under their homeowner insurance policy.
But if the property damage is sudden and accidental, then the policyholder may be able to file a claim under their homeowner insurance policy.
For example, suppose a tenant accidentally causes a kitchen fire while cooking or damages some property due to a plumbing issue or water damage leakage. In that case, the policyholder will be able to file a claim for the property damages.
Does renters insurance cover landlord’s property damage?
Renters insurance does not cover the landlord’s property damages as it is designed to protect the policyholder’s personal property and liability.
If some renter causes property damage to the landlord’s property in the form of a hole in the wall or a stained carpet. Then landlord is responsible for fixing the property damage by seeking reimbursement from the tenant insurance and deducting it from the tenant’s security deposit
Does landlord insurance cover tenant injury?
When it comes to tenant injury, the answer is not a straightforward one.
For example, suppose a tenant is injured due to rental property defects such as broken steps. Now the landlord is liable for the tenant’s injuries, medical expenses and lawsuit.
If a tenant got injured due to a natural disaster or negligence, then the landlord will not be liable for the tenant’s injuries.