What will the owner’s insurance policy cover?
A property owner’s insurance on a rental property is designed to assist in repairing and rebuilding the home itself after major damage has occurred. It does not cover general repairs, injury or death of tenants, security, or loss of personal items.
Generally, except under special circumstances, the OWNER IS NOT legally responsible for the loss to the tenant’s personal property, possessions or personal liability, and OWNER’S INSURANCE WILL NOT COVER such losses or damages.
lf damages or injury to owner’s property is caused by resident, resident’s guest(s) or child (children), the owner’s insurance company may have the right to attempt (under the “subrogation clause”) to recover from the resident(s) payments made under owner’s policy.
Following is a non-inclusive list of examples of possible costly misfortunes that, except for special circumstances, you could be held legally responsible for
- Your babysitter injures herself in your unit.
- Your defective electrical extension cord starts a fire which causes damage to the building and your personal property and or the personal property of others.
- A friend, or your handyman, is injured while helping you slide out your refrigerator so you can clean behind it.
- While fixing your television set, a handyman hired by you is injured when he slips on the floor you have just waxed.
- Your locked car is broken into and your personal property and that of a friend is stolen.
- A burglar breaks your front door lock and steals your valuables or personal property.
We highly encourage all tenants to obtain a Renter’s Insurance Policy. These are often between $10-$20/month and depending on the plan will protect you and your property in instances of injury, theft, fire, etc.