Insurance Exposures for Rental Property

27 February 2015
Comments: 0
27 February 2015, Comments: 0

Residential rental properties signify an important investment you have made and therefore need to be adequately protected with insurance. These properties are usually insured under a Dwelling residential rental property agreementFire/Landlord Insurance policy. These types of policies generally provide coverage for the dwelling, other structures, your personal property (not tenant’s), fair rental value and owners, and landlord liability coverage. As an owner/landlord there are exposures that may jeopardize your insurance coverage.


Here are a few examples of exposures that your insurance policy may not provide coverage for or may reduce coverage.

* Vacancy – Loss resulting due to home being vacant. Depending on the time frame the home has been vacant; coverage may be reduced or declined for various perils.

* Trampolines – Loss resulting due to injury from trampoline on premises. Coverage may either be declined or excluded. Owner may be responsible for any injuries sustained.

*Dog Breeds: – Loss resulting due to injury or dog bite from certain dog breeds may be excluded or limits reduced depending on the insurance carrier.

*Illegal Growing – Loss resulting from illegal growing of plants or raising of animals or illegal manufacturing or processing of plant, chemical or animal materials. Coverage may excluded whether the owner has knowledge of this or not.

*Tenant Contents – Loss resulting to tenant’s contents due to a covered exposure on your policy such as fire or theft.   Tenant is responsible to obtain Renters Insurance to cover their own personal contents, their loss of use and liability exposures.

*Business on Premises – Loss resulting from a business being conducted on premises by tenant or a third party is typically excluded.
See also: Will Your Homeowner’s Insurance Policy Cover Slow Water Leaks?
In order to avoid any insurance exposures that may not be covered under your Insurance policy, we recommend inspecting property, following up with your tenant periodically and running a background check prior to renting.

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