We’ve said it before but this is worth mentioning a million times, being a landlord means you are running a business.
When you rent out a property that you own, you are taking responsibility for the maintenance and upkeep of that property, the people who dwell in that residence, and any damages or injuries that are sustained due the neglect of the property or land.
This is why landlord insurance policies are crucial.
When you own a home, you purchase homeowners insurance. That covers your residence, property and anything else that you select that is eligible to be covered within the policy.
If you rent out a property, your homeowners’ insurance does NOT cover that property. To protect the property you rent to tenants, you will need to purchase landlord insurance which includes landlord liability insurance.
Is it required to have insurance on your property? No. Is it necessary to protect yourself from out-of-pocket expenses that you can be deemed at fault for? YES, we think so.
Let’s dive in and talk a bit more about what landlord liability insurance is, and a few examples of how it can protect you in the long run.
Landlord Liability Insurance – The Basics
As a property owner we know that you may not be an expert at all things insurance…that’s why you found your way to this article!
The good news is that at Insurance By Castle, we are experts! We are the leading insurance agency for California property owners and landlords and it’s because of our expertise in the industry and dedication to our clients. Check out some of our more than 500 5-star reviews.
Even though we are experts in this arena, we don’t want to overwhelm you with all the details. We are here to explain the basics and the importance of having landlord liability insurance and how you can get an affordable rate by partnering with us!
By definition, liability insurance is the protection and coverage you receive from a policy in case of an injury or an incident that results in injury or damage at your responsibility.
Basically, it means, if someone gets hurt or a piece of property is damaged and it is found that your neglect to resolve the issue is to blame, you could be responsible for legal fees, medical bills, emotional damages, property replacement, and oftentimes even more.
When you have a policy, you will have a shield that helps you cover these costs so that you won’t have to pay completely out-of-pocket for these expenses.
Examples Of When Landlord Liability Insurance Would Apply
Landlord liability policies usually include the following:
- Tenant or guest injuries that are deemed the fault of the property owner
- Damage to renters’ property because of neglect by the property owner
Note: This is just specific to the liability portion of landlord insurance. Landlord insurance policies cover much more and you can read about what a full policy covers in our previous article, 4 Things That Apartment Building Owners Insurance Covers!
In order to understand how liability insurance comes into play, we’ve listed a few examples that you may not even realize could deem your responsibility.
Slip And Fall
If you neglect to post signs that you have recently mopped a hallway in a building, failed to repair a faulty sidewalk or staircase, or fix an unsteady banister, you could be held liable for any injuries that occur because of those problems.
You could face legal fees, medical bills, replacement of property damaged during the incident, and more.
This could add up to thousands of dollars in out-of-pocket costs if you don’t have the right landlord liability insurance.
If you have multiple tenants in a building and say that you don’t allow pets, but knowingly allow a tenant to have a dog without any adjustment to the wording on the lease, you could be held responsible if the dog bites another guest or tenant on the property!
Do you have a reckless and unruly tenant that other tenants have repeatedly called you about? If you chose to take no action and the tenant in question damages your other tenant’s property or injures them, you could be liable for that incident!
This is because you’ve done nothing to rectify the situation despite knowing about the problem beforehand.
Ready To Get Landlord Liability Insurance? Contact Insurance By Castle Today!
If you’re in need of landlord liability insurance, connect with our team at Insurance By Castle today to get a quote!
We will work with you to create a customized plan that suits your needs and budget.
We can also assist with renters insurance, RV insurance, and more!