Is there insurance to cover intentional damage by tenants?

2 Replies

Is there insurance to cover intentional damage by tenants? For example, if your tenants intentionally trash and damage your property, turn it into a meth lab, or any other intentional damage (e.g. vandalism). 

Is there a type of insurance that landlords can purchase to get reimbursed for this damage or do landlords have to pay for it themselves? This is probably one of the things I am most scared of in owning rental properties, particularly in C/D class areas. 

Yes. Be sure to get a landlord policy for your property instead of a homeowner's policy. Any insurance agent get do this for you. You can also look at getting Surevestor policy if oyur property manager is an approved for this.

Originally posted by @Bryan T. :

Is there insurance to cover intentional damage by tenants? For example, if your tenants intentionally trash and damage your property, turn it into a meth lab, or any other intentional damage (e.g. vandalism). 

Is there a type of insurance that landlords can purchase to get reimbursed for this damage or do landlords have to pay for it themselves? This is probably one of the things I am most scared of in owning rental properties, particularly in C/D class areas. 

 Bryan, some policies provide coverage and some do not.  Make sure to ask your agent if specific losses are covered. 

Over the past few years, several insurance companies have added Exclusions to policies at renewal targeting meth labs.  The Exclusion will have some form of language stating "Damage by fumes" is excluded.

I'd also add "Wear and Tear" is not covered, such as torn carpet, holes in the wall, broken appliances, etc.  A tenant can cause a lot of damage without actually calling it an Intentional Act.

One option to greatly reduce this risk is to pass on the C/D areas and stick with the A/B part of town.  Good luck.