Landlord insurance is a must if you plan on renting your property. Without it, you will be responsible for all the damages to your property. You need to understand what your landlord insurance covers and what it does not. This article will help you understand what your landlord insurance usually covers.
Tenant damages are of three types. You will need to talk to your insurance provider to ensure what exactly is covered under your policy.
Accidental damages can include broken windows, fires, and flooding within the property. Your policy will include a list of accidental damages it will cover. Read through your policy so to know what damages are covered in it.
Intentional damage is any damage caused by the tenant on purpose. This may include broken windows, doors, or damage to sinks, toilets, or light fixtures. Since the damage is intentional, most landlord policies don’t cover it. You can pay the damage expenses from their security deposit or even sue them in case of extensive damages.
Wear and tear damage is caused by everyday use, and even your best tenants can unintentionally cause it. Such damages cannot be prevented but minimized. The damage can be covered with the tenant’s security deposit.
Document the condition of your property before your tenants move in. Once they leave, you will immediately know what damages they caused.
You have options for paying for the damages that your tenants caused. One of which is the security deposit they gave you when they moved in.
Security deposits give you the money you need to repair minor damages to the property. Normally, it is sufficient to cover damages caused by wear and tear. However, analyze the rental laws related to security deposits before taking a decision.
If damage is extensive, you have the right to take them to court to recover your losses, but lawsuits are expensive and take time.
If you notice that your property isn't being properly maintained during an inspection, you can file for an eviction. You can hire a lawyer to prove that the tenant has knowingly damaged your property, the eviction will be awarded, and the tenants will be forced to move out.
Your landlord insurance can help reimburse the loss of rental income while you repair your property. At Fuller Insurance Agency, our insurance professionals can help you get the coverage you need by creating a customized policy for you.