Author Topic: Insure against damage by renters?  (Read 429 times)

MilesTeg

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Insure against damage by renters?
« on: September 30, 2018, 09:09:41 PM »
What options, if any, are there to insure against potentially massive damage done by renters. In particular I'm thinking about things like renters that cook meth or something on your property, which destroys the value of the home as it requires a complete remodel (down to frame) to remediate?

We've been considering rental properties and always thought we could avoid such trouble by targeting high income properties, but we're recently reminded that even that won't work when witnessing a $500k ($2200+ rent a month) house exposed as a meth den that is now being ripped down to the studs and effectively rebuilt to make sellable again.

YttriumNitrate

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Re: Insure against damage by renters?
« Reply #1 on: October 01, 2018, 07:00:25 AM »
Well, homeowner's insurance is one way to help mitigate massive damage, but the better way to prevent it is with tenant screening and routine checks on the property.

cchrissyy

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Re: Insure against damage by renters?
« Reply #2 on: October 01, 2018, 02:37:36 PM »
there's no magic property value where your renters might not purposefully or accidentally burn the place down.  good news is, that's what your homeowners insurance policy is for.

since you are still in the research stage, call your existing company and ask them, hypothetically, if you converted the house to a rental and changed your homeowners policy to a landlord policy, do they offer that and what the cost would be.

Cubert

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Re: Insure against damage by renters?
« Reply #3 on: October 03, 2018, 05:14:57 AM »
Good answers from Nitrate and Chrissy. Your existing home owner's policy covers damages and liability for personal injury up to specific dollar amounts. As a landlord with five rental properties, I've become a fan of the mighty Umbrella Policy, which covers you above and beyond those initial HO limits. Umbrella policies generally start at $1M coverage and fairly cheap (like $200 a year). I have a $2M policy that costs me about $300.