Does Tenant Insurance Cover Damage to Landlord’s Property?

In the event that a tenant vacates your property, for example, it's critical that you take precautions to safeguard yourself against any potential harm. It's a good idea to cover all the bases to ensure you're insured against any potential property damage, even if the tenant is someone you know. We'll be looking at every manner that renters insurance covers harm to the landlord's property in this article.

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Who is responsible for accidental damage to rental property?

In most cases, any unintentional damage to the rental property is the tenant's responsibility. For example, the tenant runs the risk of unintentionally starting a fire if they become overly engrossed in their favorite show and neglect to take out the pizza from the oven. They might be held financially responsible for any harm done to their suite and any other suites that may have been impacted if this occurs.

However, having tenant insurance may cover the cost of any loss or damage and protect the resident from having to pay these costs out of their own wallet.

Related: Should the landlord have property insurance?

Does renters insurance protect the landlord?

Renter's insurance is often required by landlords, and not merely to safeguard their tenants. Having renter's insurance can spare the landlord from having to handle any future legal actions.

Suppose a leak in the tenant's toilet causes irreversible damage to a few of their possessions. In the event that they choose to sue you for damages, even if you are not at fault, the outcome could be disastrous.

Making sure that your tenants have renters insurance works to protect the landlord by ensuring that your residents can make an insurance claim in order to recoup their losses, rather than taking you to court.

Related: Does homeowners insurance cover renter’s damage

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What is covered by tenant insurance?

Having tenants insurance can cover a lot of potential scenarios that could otherwise have lessees paying out of pocket. Here are a few common questions about possible incidents that could end up financially hurting the tenant:

Related: What Does (And Doesn’t) Renter’s Insurance Cover?

What happens if I damage rental property?

You may be responsible for paying for any repairs or replacements of any damaged property if you are at fault for destroying the rental home you are staying in and you do not have tenants insurance.

What happens if someone gets hurt on my rental property?

Let’s say you’re renting a house and someone injures themselves while on your property. Even if it isn’t any fault of your own, they could come after you for damages and even take you to court for hospitalisation bills and more.

Thankfully, having tenants insurance can protect you from the financial repercussions of these scenarios and more by including three main coverages. The most common coverages that are included with tenant insurance policies are:

1. Liability Coverage

This helps take care of the cost of legal fees in the event of a lawsuit brought against the tenant, as well as paying out the amount of damages for any successful suit brought against them.

2. Additional Living Expenses

This coverage can help to pay for many of the costs associated with having to relocate in the event that your home needs repairs. For many, a long-term stay in a hotel is unsustainable — this part of tenant’s insurance helps to alleviate those costs and concerns.

3. Contents Insurance

Contents insurance covers the cost to replace or repair the contents of your home. Whether you lose your personal belongings due to theft or an incident such as a fire, contents insurance can help get you back on your feet by covering any replacement costs.

Related: What insurance protects the things you own

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How much does tenant insurance cost?

While managing rental properties, landlords must be prepared for various legal challenges that can arise, not only with tenants but also in ensuring their estate is well-prepared for future transitions. Consulting the right trust attorney can be crucial in navigating these complex legal landscapes. They offer specialized knowledge in trust and estate planning, providing security for your assets and offering peace of mind when dealing with tenant-related legal issues.

While the cost of tenant insurance will vary depending on what insurance company you choose to purchase from, most companies will look at a number of factors, such as:

• Where you live

• How much insurance you’ll need

• Your insurance claims history

• How and when your property was built

APOLLO Insurance offers you the lowest rates by partnering with brokerages all across Canada. Get your free quote emailed directly to you in under five minutes and find peace of mind today!

Should you need help, our expert insurance advisors are always there to answer any questions you may have over live webchat or phone.

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