Does Landlord Insurance Cover Tenant Damage

Q: My tenant ruined the floor in my rental apartment. Will my insurance policy pay for it? Wanda, Cranford, NJ

A: Landlord insurance may cover unintentional damage caused by tenants, like an accidental kitchen fire for example, but it will not cover intentional damage or wear and tear.

What does landlord insurance cover?

If you rent out your residence on a full-time basis, you’ll need landlord insurance since homeowners insurance doesn’t cover non-owner occupied residences. Landlord insurance covers the structure of your rental property from damage caused by covered perils, including fire, a busted pipe, or bad weather. But when it comes to damage caused by your tenants, landlord insurance may be less likely to help cover the costs.

Landlord insurance may cover unintentional damage caused by your tenants — including accidental fires — but if a tenant steals property, vandalizes the interior, or causes damage from everyday use, landlord insurance likely won’t cover the cost of repairs. This is why landlords should require tenants to pay a security deposit and that their tenants get renter’s insurance.

Thanks for your question, Wanda.

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