Does Tenant Insurance Cover Damage to Landlord’s Property?

If you’re thinking of becoming a prospective landlord, it’s important to protect yourself from any potential damages you could suffer, such as a tenant leaving your property a disaster.

Even if you’re renting to someone you know, it’s a good idea to cover all of your bases to make sure you’re insured against any property damage that may occur. In this article, we’ll be taking a look at all the ways that renters insurance covers damage to the landlord’s property.

Who is responsible for accidental damage to rental property?

Most times, the tenant is responsible for any accidental damage to the rental unit. For instance, if the tenant gets too involved in their favourite show and forgets about the pizza they put in the oven, they may inadvertently start a fire. If this happens, they could be required to pay for any damage that may incur to their suite and any surrounding suites that may have been affected.

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?

Many landlords require renter’s insurance not just to protect their tenants. Ensuring renter’s insurance is in place can save the landlord from having to deal with any potential lawsuits.

Let’s say your tenant has a leak in the bathroom that damages some of their belongings beyond repair. Should they decide to come after you for damages, they could end up suing you with potentially devastating results, even if you’re not at fault.

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

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?

If you’re at fault for damaging the rental property you’re staying in and you don’t have tenants insurance, you could be on the hook to pay for any repairs or replacements to anything you have damaged.

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

How much does tenant insurance cost?

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.