When you own a rental home, it is important to make sure that you have home owner's insurance that will cover any and all damage to your property. Homeowners who own rental properties are sometimes confused as to who has responsibility to insure the home, when they have renters. As the homeowner, it is your responsibility to have insurance on the property, while the renter is responsible for having renters insurance that will cover damage to their belongings or damage that they cause to the property. The following guide walks you through a few reasons why you need homeowners insurance on your rental property that you may not have considered.
Liable for Some Injuries that May Occur
It is important to realize that if someone is hurt on the property by falling down the stairs, tripping on the sidewalk, or is hurt by something that is faulty with the home, you could be held liable for their injuries. Depending on the severity of the pain and suffering they endure, the injury could end up costing you thousands of dollars, if you do not have homeowners insurance on the home. Even if your tenant has renter's insurance on the property and you were not present when the accident occurred, the injured party could still sue you for the injury.
Liable for Avoidable Damage
If you notice that tree limbs are becoming overgrown, gutters are starting to pull away from the home, or anything else that is even slightly wrong with the property that you know needs to be fixed, it is important to have it fixed right away and make sure you have great insurance coverage on your home, as well. If the tree branch falls on the car of your tenants or the gutters fall off the house and land on their motorcycle, you will have to pay for the damage that is caused to their property because it is viewed as an avoidable incident. As the homeowner, it is your job to keep the home in good condition and your homeowners insurance may cover the damages that are done to the tenant's property so that you do not have to pay for the damages all on your own.
Liable for Major Repairs
If the hot water tank leaks onto your tenant's belongings, you will have to pay to replace them. Depending on what is being stored near the leak, this could become a very expensive incident for you. While their renter's insurance may cover some of the damage, the insurance company may try to fight to have you pay for the damage because it occurred due to something that was wrong with the home.
Having a well insured rental property is important because most people simply cannot afford to pay thousands of dollars for damages or repairs out of their own pocket when something goes wrong. By keeping the home well insured, the chances of having to pay an exorbitant amount of money unexpectedly will be greatly diminished.
For more information, contact an agent like those at the Kerr Agency.