Landlords do a lot more than just collect rent from tenants. A host of other responsibilities are required in order to perform the job effectively. In addition, landlords who are the owners of a property are also required to assume certain risks. Namely, any landlord who rents to a tenant must accept potential liabilities that can be caused by a tenant. A solid landlord insurance policy may be able to cover scores of damages. Questions might arise whether or not these insurance policies are also going to cover malicious damage and these questions do need to be answered.
What is malicious damage and how is it different from other forms of liability?
Damage can befall a home or apartment without any warning. Plumbing mishaps, fires, and natural disaster can all cause unforeseen problems. Malicious damage can also cause the ruination of a property, but what sets it apart from other forms of damage is the deliberate nature of it. By definition, malicious damage refers to any act of vandalism or destruction of the property rooted in anger, mischief, spite, or vindictiveness. Regardless of the reason for the cause of the damage, the landlord is going to suffer from financial losses due to necessary repairs now required. Without the proper landlord insurance policy in place, the owner of the property must incur all the costs associated with the damage.
Is malicious damage covered in a landlord insurance policy?
Malicious damage insurance can be covered in a landlord insurance policy, but it is not a common item in most policies. Anyone who currently has a landlord insurance policy in place, should review the policy to see if malicious damage is already included. If not, then the malicious damage coverage, the coverage should be added to the existing policy. When the extra coverage is added to the policy, then the cost of the policy is going to increase. This cost might be worth the investment considering how expensive it may be to repair the damage inflicted by a tenant who decides to lash out and inflict harm on the property. Simply calling up an insurance provider and requesting a quote is all that is necessary to start the process of acquiring this helpful coverage.
Screening tenants is a must
The best way to reduce the potential for dealing with malicious tenants is to screen them as carefully as possible. Generally, tenants likely to cause harm to property in the future probably have a track record of doing so in the past. That said, even with a very good screening process, acquiring decent malicious damage coverage is advised.
The amount of time it takes to have malicious damage insurance added to a policy is relatively minimal. Anyone wishing to fully financially protect their business should acquire this coverage without delay.