Homeowner’s Insurance and Tenant Damage
It can be stressful to rent out your property, whether you know your tenants or not. Outside of the many duties you juggle, there is always a threat of property damage soaking up your money and time. From an angry evictee to regular wear and tear, tenant damage comes in many sizes and shapes. Our public adjusters are experts on property claims in South Florida. They are happy to help you understand which damage is covered and give you critical tips for avoiding tenant damage from happening.
What isn’t covered
There are two categories of tenant damage that insurance will not cover: intentional damage and wear and tear. Deliberate damage is usually unexpected and might occur due to a tenant damaging your property during a domestic dispute or an eviction process. Some intentional damage examples include:
- Broken doors or holes in the walls
- Missing appliances
- Broken mirrors or glass
- Graffiti or spray paint
Though intentional damage is similar to theft or vandalism, your lease contract entrusts the care of your property to the tenant. The lease agreement means that you must recover any intentional damages through a security deposit or civil lawsuit. You should provide penalties for damage and misuse in the leasing contract. On the other hand, wear and tear are expected, and you can often recover costs through their security deposit.
Tenant damage that is covered
Thankfully, accidental tenant damage is covered by most standard policies. For example, your insurance carrier typically covers accidental fires like electrical mishaps and kitchen fires. Your policy should also protect you in case of water damage like appliance overflow or a backed-up septic system. Remember, though, plumbing leaks and accidental damages are one thing. Still, your claim will likely be denied if there are underlying issues from a lack of maintenance to your rental property. For example, if your tenant mentions flickering lights or leaks, these may signal more significant problems. Have a professional inspect the property to mitigate risks before a loss happens.
Damage costs
When your rental property is left in a mess, it is time-consuming and costly to fix. Though the cost of rental unit repairs varies significantly according to the situation, recent statistics on claims show prices ranging from $5,000 to $30,000 for repairs. Depending upon the location and level of damage, repair costs may exceed the property's value. But, rental properties are your business, so you also have to consider the loss of rental income during the repair process, even when repairs are costly.
Hiring an expert on property claims in South Florida can help you manage your insurance claim and keep it on track to repair your investment correctly. Our public claims adjusters work for you and not your insurance carrier. You can trust us to provide an unbiased perspective on the true scope of damage to your rental property. Our insurance claims experts can recover a more than 500% higher settlement for repairs than you can when handling your claim independently.
This information should help you understand how homeowner's insurance covers tenant damages. We have you covered when you need assistance with your property claims in South Florida. Contact us today for more information.
