Generally, you can legally rent out a house or apartment for only a single year if you insure it with an ordinary homeowners’ coverage. However, renters insurance also covers your personal property, especially if it is damaged or stolen during your stay. Hence, liability insurance for rental property not only reduces a liability on your credit report for future rental property rentals, but also eases your headache in the event of unexpected property damages. It may be difficult to select a liability insurance policy for rental property that meets your needs, but it is certainly worth the effort.
One liability issue for landlords is tenant liability, which can arise from a variety of sources, such as dog bites or damage done to the rental property by non-paying tenants. It is actually the responsibility of the landlord to make sure that their tenants are responsible and pay their rent on time, but the renter does have a right to bring suit against the landlord and hold the landlord liable for injuries to, damages to, and death occurring while in their residence. In addition, landlords should make certain that they follow all local laws, including those governing tenant liability, and provide reasonable security measures to protect their renter’s safety.
Most apartment complexes and condo buildings do have liability insurance coverage, but many apartment managers neglect to inform their tenants about the policy or fail to make the policy effective. A good liability insurance policy for rented property provides coverage for the actual cost of repair to the property and legal fees to any individual who has been injured while in the residence. The limits of liability will vary between different policies, depending on the coverage offered, the amount of liability (including actual damages and/or legal fees), and the duration of the policy.
Landlords should also consider the cost of rental income. Some people count on the revenue from their rental income to cover the cost of liability coverage, but this may not be realistic for all landlords. In addition, it may cost more to offer additional coverage for liability because the liability risk could be raised higher under existing policies. Therefore, additional coverage may be required.
Many landlord insurance policies provide coverage only if the tenant or his guest is injured while in the apartment complex or its leased outdoor spaces. However, there are times when an individual has reason to believe that someone may be injured in one of these places. For example, someone may throw something over a fence or into an apartment complex. In such cases, the individual who believes that someone was injured can file a lawsuit to recover monies lost and medical bills that are associated with the injury. An apartment complex with one or more dog runs should consider liability insurances for both tenants and employees.
In addition, some renters need liability coverage even if they never intend to be in a rented space. For example, many people rent furnished apartments. If the renter’s furniture were damaged or stolen, the renter would need to pay for replacing everything at no cost to them. In this situation, the renter would have to obtain liability coverage in addition to any furnishings that are in the apartment.
To calculate a commercial insurance cost for renting a space, several factors need to be considered. One of these factors is the number of people that will be in the building or its environs on any given day. Another factor is the nature of the business. In order to get a rough estimate as to how much a commercial insurance cost might be for renting space, an appraiser needs to look at the structure and contents of the property.
If a fluffy scratched couch is replaced with a new couch that looks pretty good but has a tiny little hole, the liability insurance for rental might not cover the cost of the new couch. On the other hand, a fire damaged couch may be covered by the renter’s policy while a damage caused by tenant negligence or tenants doing things like replacing water heaters and stovetops with units that don’t hold enough water, could be covered by the renter’s insurance. If a tenant decides to remodel the property and the work causes damage to the interior of the home and fixtures like a ceiling fan, a tenant liability insurance policy could cover the cost. This type of coverage is usually a lot more expensive than a blanket coverage provided through a rental agreement however.