Breaking Down Your Landlord Insurance Policy Coverage

Curious about your landlord policy coverage? Max McClure (Chief Insurance Officer at Steadily) dives into the nuances of landlord insurance . Discover what your policy really covers, what it doesn't, and crucial tips to protect your investment property. Whether you're a new landlord or seasoned pro, Max's insights will help you navigate landlord insurance complexities with confidence.

Does my insurance cover tenant-caused damage?

It depends. If the damage was maliciously done and intentional, then it would be covered. If the damage was due to normal wear and tear associated with a rental property, it would not be covered. If there is something that happens to your rental property that is covered under the policy, it will trigger your loss of rental income coverage, which will reimburse you for lost rental income. Understanding landlord responsibilities can help you better navigate these situations.

Is flood damage covered?

Flood damage is excluded in your typical landlord insurance policy. However, you can buy it separately. Talk to your agent about getting that separate coverage. It's also wise to compare insurance quotes to find the best flood insurance options for your needs.

What’s covered by liability insurance?

In the event that something happens at your property where someone is injured or you get sued, your policy will cover your defense costs. It potentially will settle with the other party and it will help cover medical bills. For more on this, explore the legal risks for landlords and how to stay protected.

Is wear and tear covered?

Every part of the building, every part of your rental property, every component like the wood siding, the sheetrock inside, it has a lifespan. It doesn't last forever. And so you would expect over time for those things to deteriorate and need to be replaced at some point. And those things are not covered by your policy. Which is why it's really important to have a regular maintenance plan with your rental property, keep those things maintained. Avoid common landlord pitfalls by staying proactive with property upkeep.

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Does my insurance cover tenant vandalism?

So vandalism is covered on your policies. We have had scenarios where a landlord was in between tenants for 30 to 60 days while one tenant moved out and the next tenant moved in. Maybe they were applying a fresh coat of paint to the rental property before the new tenants moved in. And during that interim period, we have had scenarios where vandals broke into that property and graffitied the walls, maybe poke some holes into the sheetrock. And that would be a covered claim.

My tenant changed the paint color without permission. Is that covered?

Unauthorized tenant alterations are not covered. Let's say a tenant moves out of your property, you go look at it after they've moved out and they have painted the entire house lime green, which happens to be your least favorite color and is also a color that new tenants aren't a big fan of and you decide you're going to need to repaint the entire house, which can be expensive. That would not be covered under your policy. Check out our landlord resources for tips on managing such situations.

Is earthquake damage covered?

Earthquake damage is not covered. Earthquake coverage is going to be excluded on your typical landlord insurance policy. However, you can buy it separately. Reach out to your Steadily agent for help, especially if you own an out-of-state rental property in an earthquake-prone area.

Will my insurance cover legal fees from disputes with tenants?

Sometimes your policy will cover those legal fees and other times it won't. An example of a situation where the policy will not cover the legal fees is if it is a business dispute. Steadily’s insurance policy is not a business insurance policy. So if you get into a dispute with your tenant about paying rent and how much the rent is and whether it's been paid on time, that's not something that your insurance policy is going to get involved in. But if there was something that happened to your property, let's say that somebody got hurt, or there was some dispute around the condition of the property that led to bad outcomes that may be covered under your policy. Familiarize yourself with emotional support animal laws to avoid potential legal disputes.

Are off-premise activities covered?

Off premises liability coverage for short term rentals is covered. Let's say you have bikes or kayaks at your short term rental that you allow your tenants to take out on a lake or out into town if they want to go get some ice cream. Most insurance policies are not going to cover the activities that are off the premises, off the property. Steadily has coverage that provides liability protection for you when the tenants take those things and go do activities off the property, which is really important. Learn more about legal liabilities for landlords to ensure comprehensive protection.

By understanding these aspects of your landlord insurance policy, you can better protect your investment and ensure peace of mind. For more information on modern insurance solutions, explore our guide on modern insurance solutions.

Disclaimer: Steadily is a landlord insurance agency. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. Customers should read the policy for a complete description of coverage. Coverage options, limits, discounts, deductibles, and other features are subject to individuals meeting our underwriting criteria and state availability.