You’re renting your property, and that can be stressful! Aside from all the other duties you are juggling, there’s always the threat of property damage taking your time and money. From typical wear to an angry evictee, damage from a tenant can come in all shapes and sizes.
Our public adjusters go over what damage is and isn’t covered, and give you some tips on how to avoid the damage from occurring in the first place!
What Isn’t Covered
Tenant damage that isn’t covered can be separated into 2 categories: Wear and tear, and intentional damage. Wear and tear is to be expected and in some cases would be accounted for through the security deposit. Intentional damage, however, is unexpected and could be caused by a tenant purposefully damaging the property during an eviction process or a domestic dispute.
Some examples of intentional damage could be:
Broken walls or doors
Missing appliances
Broken glass or mirrors
Spray paint/graffiti
Although purposeful damage sounds a lot like vandalism or theft, the lease contract generally entrusts your tenant with caring for your property. However, if your tenant left you with intentional damage, this would be reimbursed through a civil suit or a security deposit. Any penalties for misuse or damage should be noted in the leasing contract.
Is Any Tenant Damage Covered?
Yes! Thankfully any tenant damage that is accidental is covered by most policies. Accidental fires such as a kitchen fire or electrical mishap generally would be covered. Water damage such as a backed-up septic line or an appliance overflow should be covered by your insurance policy as well.
Bear in mind: accidental damages and plumbing leaks are one thing, but insurance will likely deny your claim if there was an underlying issue from lack of maintenance of the rental property. If your tenants mention a leak or flickering lights, these could be a sign of a bigger issue. Have a professional take a look to help mitigate your risk before a loss occurs.
Read More > How To Place a Water Damage Claim
How Much Could This Damage Cost Me?
So you’re left with a big mess at your rental, both as costly as it is time-consuming. How much are we looking at here? Although the stats vary a lot from case to case, recent claims data shows amounts anywhere from $5,000 to $30,000 in repairs! Depending on the damage and location, it could even cost more than the investment property is worth! But for as costly as the repairs can be, this is a business; you must also take into account any rental income lost in the meantime.
Having a loss expert to help you keep the insurance claim on track can help get your property fixed properly. Plus, our loss adjusters work for you not your insurance company. You can trust us to give an unbiased perspective on what the damages to your rental property truly are. Our specialists can you up to 574% for your repairs than submitting the claim on your own.
Avoiding the Unforeseen with Tenant Damage
One of the only ways to avoid a tenant trashing your property is to thoroughly screen them. It’s impossible to know 100%, but doing your due diligence with one’s rental history can save you the headache of taking on a nightmare tenant!
Stay firm with your desired security deposit. The cost of waiting a month or two for the perfect tenant far outweighs the headache and cost that comes with eviction or significant repairs. Lastly, if the unfortunate situation arises where there is an angry tenant being evicted, offering “cash for keys” may be a good alternative to risking spiteful damage.
In between tenants is another good time to perform routine maintenance on your property. Inspect your water heater, sink faucets, electrical panel, and interior HVAC units. If you have the thought there may be something wrong, do what you can to get it repaired. Remember: improper maintenance is a common reason for insurance companies to attempt to undervalue or deny your claim.
What About ‘Wear and Tear’?
Keeping a property well maintained is hard when you're not the one to notice the issues. During the walk-through, be very detailed about the costs of repair or replacement. No landlord wants to use their tenant’s security deposit, so being transparent about this will also help establish a good rapport with your tenant.
Checking in with the tenant and staying on top of any maintenance requests will also allow them to feel comfortable reporting any damage in a timely fashion.
If you have damage on your rental property, get the settlement that you deserve by hiring a public adjuster from Liberty Insurance Adjusters, submit your claim today! Get justice for your property damage.
Read More > Property Management Partners: Working Together on Claims
Focus On Your Properties, We Will Handle The Rest
We know that leaving your property to a tenant can be stressful, so lean on our loss experts if disaster strikes. Let us walk you through the claims process and get you the settlement you deserve.
Get your claim done right the first time! Submit a claim online or call our public adjusters at Liberty Adjusters today at 813-922-5129.