Midlothian, VA · Member since 2013 · 130 posts · 17 votes
Hello,
Thinking about ways to mitigate the risk of tenant-caused damage to my rental properties. Any ever heard of insurance that the TENANT can buy that covers the landlord in case the tenant goes crazy and destroys the place? I don't feel I should have to pay out of pocket to fix damages above and beyond normal wear and tear, and I don't feel my insurance should have to cover it, either.
Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
7y
Yes, it's called "enough security deposit and thorough background check". It often comes with proper property management. J/K.
@Patrick Sears, even if there is such insurance product, it will be prohibitely expensive relative to benefits.
Insurance policies have vandalism coverage/clauses, but I think that applies to vacant properties.
One thing that you want is to require tenants get their own insurance (in case they burn down the kitchen) and ask them to add you to it - but you have to be careful, there is a difference between additional interest (which notifies you only of policy continuance) and additional insured (which might make it difficult to collect as in the case of burned kitchen it will be like suing yourself to get the money) - check with an insurance specialist.