Does Homeowner’s Insurance Cover Renters Damage?

Aug 2, 2022

If you have a property you’re planning on renting out, you may think that your prospective lessees are covered under your homeowner’s insurance policy. However, this is not always the case. Homeowner’s insurance policies aren’t just property-specific — they’re also specific to the policyholder.

This means that your homeowner’s insurance policy may not apply if you or a family member are not residing in the house.

Generally speaking, you should make sure that you have landlord insurance to cover you for any damages to the building, especially those caused by natural disasters or unintentional harm caused by your tenants.

Meanwhile, tenant insurance will cover the lessee for any damages to their own personal property, often saving them from having to pay out of pocket in the event of damages.
In this blog post we’ll be taking a look at some commonly asked questions and going over everything you need to know about whether homeowner’s insurance covers renters damage.

Should I require my tenants to have rental insurance?

For many landlords that are homeowner’s, rental insurance is a stipulation of the terms of the lease. Requiring that your tenants have rental insurance protects them from having to pay out of pocket for any damages they may have suffered.

Making rental insurance a condition of the lease also protects the landlord from the possibility of being taken to court for any injuries or damages your occupants feel you are at fault for, regardless of whether these claims are warranted or not.

For instance, if a landlord’s residents suffer damages to their property due to a water leak, they will have their own insurance to cover the cost of any damages, rather than having to come after the landlord for financial compensation.


Need Home Insurance?

Learn More


What type of damage does the homeowner’s insurance not cover?

There are some types of damage that are not covered by homeowner’s insurance. Generally, insurance companies offer additional coverages to protect you from these concerns, such as:

1. Flood Insurance

If you are in an area where flooding is a common occurrence, consider talking to your insurance company about adding Flood Insurance to your policy.

2. Additional Water Damage Coverage

Many times, insurance policies won’t cover water damage that’s the result of a slow leak over time. It’s often a good idea to get a yearly home inspection to ensure this damage isn’t happening to your home.

3. Valuable Items Insurance

Most homeowner’s insurance policies cover theft to a certain degree, but don’t expect to get paid the full amount if, for instance, you’re living in an area susceptible to flooding with a piece of valuable wooden furniture in your basement. Make sure to purchase extra insurance for any expensive items you may have.

In terms of having renters, even landlord insurance won’t cover any property damage caused by intentional damage or regular wear and tear from your tenants. For this, most landlords require their tenants to have tenant insurance, as well as enforcing a damage deposit, often for the amount of one month’s rent.

Are tenants liable for accidental damage?

Generally, the short answer to this question is yes, tenants are liable for accidental damage to rental property, whether they are renting a home in which they are the only tenants, or in an apartment building with multiple units. For example, if a tenant leaves their stove on and ends up causing fire damage to their apartment as well as their neighbors, they are responsible for any damages that are caused to their rented property as well as any affected suites.

Ensuring tenant’s insurance is in place can save you lots of money, whether you’re the landlord or the tenant. Find out how much peace of mind costs with a personalized quote from Nexus Insurance today!


NEXUS Has You Covered

We can help you understand the benefits of Home Insurance, and get your belongings covered in minutes.

Learn More

Share this article on social media

RECENT ARTICLES

Additional Living Expense Coverage

Read in full Let’s talk about addition living expenses or loss of use coverage and how it affects you in a claim. “Additional Living Expenses.” This is where most people find they are underinsured. It pays for all the extra expenses you incur when you cannot live in...

Condo Strata’s Water Deductible

Read in full Congratulations! You just bought a condo or maybe a townhouse. Do you know what type of insurance you require? There is Important information you need to review and consider about condo or townhouse insurance. The Strata has insurance for the building...

Costs you should be aware of when purchasing your first Home

One of the biggest purchases most individuals will make in their lifetimes is a home. Using this advice, make sure you account for all the expenses associated with home ownership. You've been saving, planning your spending, and looking through open houses and online...

What insurance you will need for your investment property

Having the appropriate insurance coverage can make all the difference if you want to rent out your home. Find out which policies are necessary to safeguard your investment. Being a homeowner signifies that you have made a significant investment in a piece of property,...

How to Start a Business on Etsy

If you’re looking to turn your passion into a small business, then Etsy is the perfect platform to do that. But where do you start? As a designer, crafter, or artist, you’re likely already familiar with Etsy. After all, the international marketplace is home to...