As the spring thaw continues (unless you’re in a climate that was never frozen), we’re thinking about what a lot of our owners hate to think about: Worst. Case. Scenarios. It’s hard to think about insuring yourself and your rental property. Until, of course, you need that insurance.
This month, the focus is on liability. Your own liability and the liability of your tenants. Our liability as your property managers, too.
Let’s Talk about Landlord Liability
You’ll need a landlord insurance policy that protects your property. Repairs and replacements can be expensive if there’s a catastrophe, and full coverage will help you recover faster.
Even more important is your liability insurance. A minimum of $1 million in liability coverage is recommended. If your property and your overall net worth is higher, you might need even more. Liability insurance protects you if a tenant or their guests get injured in your property.
Why Tenants Need their own Liability Insurance
You’ve heard us talk about the importance of requiring renter’s insurance. Liability is one of the main reasons you want tenants to be covered. If they cause a fire or a flood at your property, let’s have their insurance company pay for the repairs instead of yours. It’s better for you and for us. It also leaves your tenants with more protection, making it a win for everyone.
When we talk about insurance, we want to remind you to do two things:
- 1.Review and update your insurance policy annually.
- 2.Make sure we are listed as additional insureds on your policy. Keeping your property manager protected alongside you will ensure a smooth process if a claim does need to be made or if we find ourselves in court defending against a tenant claim.
Think you’re covered because you have a homeowner’s insurance policy? You aren’t. We’ll explain more in next month’s newsletter.