Many residential landlords are unknowingly leaving themselves open to lawsuits by being underinsured and being ignorant to the ways to reduce their risks and limit their personal liability as landlords. Learn how to protect yourself as a landlord by following three basic rules.
1. Maintain adequate property and casualty and general liability insurance on your rental property.
2. Reduce the risk of potential lawsuits as a landlord.
3. Limit your personal liability as a landlord.
Vargas & Vargas recommends as a Residential Rental Property Owner, you should carry the following types of insurance coverage:
Property and Casualty insurance– This covers residential rental property owners from fire, storm or other catastrophic losses that could render their rental property uninhabitable.
General Liability insurance-This reimburses rental property owners if they’re responsible for compensating another’s losses. General liability insurance doesn’t cover intentional wrong-doing such as arson or assault, but it usually covers negligence and general liability issues.
Flood insurance-Flood Insurance is available for rental properties that are located in communities that participate in the National Flood Insurance Program. The federal government administers the National Flood Insurance Program, and insurance companies issue the policies.
Umbrella insurance-Personal or commercial umbrella insurance provides rental property owners with excess liability insurance coverage beyond the limits provided in a general liability insurance policy. Regardless of how safe and secure your rental property may be, and how much you plan and prepare for emergencies, you still must maintain adequate general liability insurance coverage on your rental property in order to help reduce your risk and limit your personal liability as a landlord.
To further protect yourself as a Residential Landlord, Vargas & Vargas also recommends:
Require everyone working on your property be insured. To reduce general liability insurance premiums, require that all repairmen and contractors working on your rental property provide certificates of insurance proving that they carry adequate liability coverage and workers’ compensation insurance. Require that each repairman or contractor have a minimum of one million dollars in liability insurance coverage.
Protect yourself further by requiring your tenants to have Renters’ Insurance Coverage. Include a clause in your rental agreement that requires all tenants to provide proof of renters’ insurance coverage prior to taking possession and occupying the premises. Most renters’ insurance policies provide coverage against fire and theft to personal property, and personal liability coverage for injuries and damages caused by tenant neglect.
If you are not sure if you are adequately protected as a Residential Landlord, contact us at Vargas & Vargas Insurance and we will be happy to review your coverage and help you manage your risks.
Vargas & Vargas Insurance recommends as a Residential Rental Property Owner, you should carry the following types of insurance coverage:
Property and Casualty insurance– This covers residential rental property owners from fire, storm or other catastrophic losses that could render their rental property uninhabitable.
General Liability insurance-This reimburses rental property owners if they’re responsible for compensating another’s losses. General liability insurance doesn’t cover intentional wrong-doing such as arson or assault, but it usually covers negligence and general liability issues.
Flood insurance-Flood Insurance is available for rental properties that are located in communities that participate in the National Flood Insurance Program. The federal government administers the National Flood Insurance Program, and insurance companies issue the policies.
Umbrella insurance-Personal or commercial umbrella insurance provides rental property owners with excess liability insurance coverage beyond the limits provided in a general liability insurance policy. Regardless of how safe and secure your rental property may be, and how much you plan and prepare for emergencies, you still must maintain adequate general liability insurance coverage on your rental property in order to help reduce your risk and limit your personal liability as a landlord.
To further protect yourself as a Residential Landlord, Vargas & Vargas also recommends:
Require everyone working on your property be insured. To reduce general liability insurance premiums, require that all repairmen and contractors working on your rental property provide certificates of insurance proving that they carry adequate liability coverage and workers’ compensation insurance. Require that each repairman or contractor have a minimum of one million dollars in liability insurance coverage.
Protect yourself further by requiring your tenants to have Renters’ Insurance Coverage. Include a clause in your rental agreement that requires all tenants to provide proof of renters’ insurance coverage prior to taking possession and occupying the premises. Most renters’ insurance policies provide coverage against fire and theft to personal property, and personal liability coverage for injuries and damages caused by tenant neglect.
If you are not sure if you are adequately protected as a Residential Landlord, contact us at Vargas & Vargas Insurance and we will be happy to review your coverage and help you manage your risks. 877-550-0025
