tenant damage not covered by insurance

When is damage from your tenant covered under your landlord 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 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 Landlord policies cover water damage so it is best to understand your policy

We have a new Rental Advantage Protection program that covers water damage

Some of the most important coverage options that are available on our new Rental Advantage program include

  • Lawsuit Protection
  • Theft 
  • Vandalism
  • Water Backup
  • Loss of Rental Income
  • Sewer Line replacement
  • Air Conditioning Heating System Mechanical Breakdown

If you would like to discuss protecting on location or a your entire rental property portfolio just give us a call or text at 504.348.3131 or send us an email at contact@fmagencygroup.com