When is damage from your tenant covered under your New Orleans rental property insurance policy is a common question we get…
A rental dwelling landlord insurance policy on a dwelling three (DWG-3) does provide coverage for theft and vandalism but the policy includes two types of tenant damage that is excluded
INTENTIONAL DAMAGE
Any intentional damage by your tenant should be covered in your lease and protected against with the collection of a security deposit
You should provide your tenant with a list of items that can reduce the security deposit if you have to repair or replace
Here is a sample list you could provide to your tenant(s)
You can use this sample list Security deposit deductions
Any intentional damage caused by your tenant such as spray painting the walls or punching holes in the drywall would not be covered by your insurance policy
WEAR AND TEAR
Any maintenance issue is not a covered claim by an insurance policy
Damaged blinds, stained carpet, nail holes in drywall, scratched hardwood flooring
They are wear and tear issues caused by daily use of your property
These two types of damage would be covered by your security deposit not your landlord rental dwelling insurance policy
What is covered under my rental property insurance policy due to tenant damage?
Recently there was a tenant evicted from an apartment complex in New Orleans
Upset about being evicted she burned down the apartment complex
Fire is a covered claim loss under a policy but arson committed by the named insured (owner of the property) or by the direction of the property owner is not
Accidental fire damage caused by your tenant is covered
Leaving a candle burning and the unit goes up in smoke or running a bath and falling asleep were two actual claims filed recently
This is considered accidental damage and fire and water damage are covered under a dwelling 3 (dwg-3) policy form
Not all Rental Property policies cover water damage so it is best to understand your policy
We have a new Rental property insurance program for Real Estate Investors
Some of the most important coverage options that are available on our new Rental Property insurance program include
- Lawsuit Protection
- Theft
- Vandalism
- Water Backup
- Loss of Rental Income
- Sewer Line replacement
- Air Conditioning Heating System Mechanical Breakdown
To find the best insurance broker for Real Estate investors you can complete the quick form below and FM Agency Group will review your insurance protection to help you lower your expenses so you can keep more of your rental income
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