Does Landlord Insurance Cover Tenant Damage? Answers and Explanations

Find out whether landlord insurance can help cover the cost of damage caused by tenants, providing valuable insights for both renters and property owners.

Nichole Stohler
Last Updated
November 20, 2023
Does Landlord Insurance Cover Tenant Damage? Answers and Explanations

Dealing with tenant damage is unfortunately an unavoidable part of being a landlord. The crucial question is -- does landlord insurance cover tenant damage, or are you vulnerable to major out-of-pocket costs when accidents or vandalism occur?

In this short guide, we'll clarify what your landlord policy will cover when destruction strikes. Discover what damage is claimable and what repairs you'll have to pay for out of pocket, and come away from this article feeling confident about your landlord insurance coverage.

Understanding landlord insurance

Landlord insurance is a type of insurance that protects rental property owners from financial losses related to their investment properties. It covers damages to the building itself and liabilities connected to the property.

Some key coverages in a landlord insurance policy include:

  • Property damage coverage: Pays for repairs in events like fire, water damage, vandalism, or natural disasters. It covers the physical structure of the rental unit.
  • Loss of rental income coverage: Reimburses lost rent if the property becomes unlivable due to a covered event.
  • Liability coverage: For injuries to tenants or third parties on the rental property, this coverage protects landlords if they get sued.
  • Additional living expenses: Pays for tenants' temporary accommodations if they must move out due to property damage.
  • Theft coverage: Applies to stolen personal property from the rental unit or building.

Accidental damage coverage

One important aspect of landlord insurance is its coverage of accidental damage caused by tenants. Though most tenant-caused damages to a rental property fall under the tenant's renters insurance coverage, accidental tenant damage is covered under landlord insurance.

Examples of accidental situations

  • Unintentional kitchen fires caused while cooking.
  • Water damage from an overflowing bathtub or sink.
  • Stained carpet from a red wine spill.

Landlord insurance will help cover the repair costs of the damages caused by these accidental incidents, as they're bound to happen in every rental.

Benefits of accidental damage coverage

Property damage caused by tenants is par for the course as a rental property owner. Insurance companies, being understanding of that, extend their landlord insurance coverage to these tenant-caused accidents, aiming to help alleviate the financial burden of repairs.

Having this financial safety net in place as a property manager allows both you and your tenant to rest a little easier when accidents happen.

Intentional damage exclusions

Landlord insurance protects property owners from various risks, but it often excludes coverage for intentional damage caused by tenants. Intentional damage refers to any willful acts or actions taken by tenants to cause harm or destruction to the property.

Limits of protection

If a tenant causes intentional damage to your property, such as punching holes in walls or tearing the flooring apart, you won't be able to file a claim and receive compensation for the repairs or replacements.

Intentional damage also includes vandalism and malicious destruction of property. Any repairs or replacements will be made using the tenant's security deposit.

Risk reduction

To minimize the chances of intentional damage, landlords should:

Responsibilities of landlords and tenants

Landlords and tenants each play a crucial role in protecting rental properties from damage and disrepair. By understanding the specific duties of both parties, you can set proper expectations to keep your investment secure.

When it comes to landlord insurance and tenant damage, clear guidelines help minimize conflicts and keep the space well-maintained. Outline what steps each stakeholder needs to take through rental agreements and policies.

Here is an overview of recommended best practices for landlords and renters when dealing with property upkeep and insurance:

Landlord responsibilities

  • Property maintenance: As the property owner, it is important to keep the rental unit in good working condition by regularly making required repairs. Confirm that key systems like plumbing, electricity, HVAC, and appliances are functioning correctly through maintenance checks.
  • Insurance coverage: Shop around for a landlord insurance policy that best fits your specific property's needs. Make sure your policy adequately covers any and all potential damages, including accidental tenant-caused damage.
  • Timely response: Respond quickly to all maintenance requests and concerns tenants raise. Quickly addressing issues can help prevent minor problems from escalating into major repairs. Resolving problems in a timely manner also promotes open communication and a positive landlord-tenant relationship.

Tenant responsibilities

  • Careful use of property: Tenants are responsible for handling the rental property with care and avoiding intentional damage. They should take reasonable measures to prevent accidents or damages, such as being cautious while cooking on the stove, keeping the property clean, and reporting any maintenance issues to the landlord.
  • Reporting damages: It's the tenant's responsibility to notify the landlord as soon as possible if they accidentally damage the property. It will let the landlord assess the situation and arrange for necessary repairs. Timely maintenance reporting can also minimize further damage.
  • Renters insurance: Encourage tenants to obtain renters insurance. Renters insurance covers a tenant's personal belongings as well as liability claims, giving them protection in case of accidents or damages they may be responsible for.

Does landlord insurance cover damage by tenants?

Yes, landlord insurance typically covers accidental damage caused by tenants; however, it excludes intentional damage. With a solid grasp of your landlord insurance policy coverage and seeking out any additional coverage that can help protect your real estate investment, you can feel confident that your rental property is covered to the fullest extent.

Take preventive measures, understand the limits of rental dwelling coverage, and stay up-to-date on the latest information surrounding your insurance policy, and you'll be off to the races.

Does landlord insurance cover tenant damage? FAQs

What is an example of tenant vandalism?

Tenant vandalism is when a tenant intentionally damages their rental unit through acts, such as punching holes in walls, spray painting graffiti in or around the apartment, or deliberately breaking windows in the rental property.

Is accidental damage included in standard landlord insurance, or do I need to add it as an extra?

Accidental damage is usually not included in standard landlord insurance. You may need to add it to your landlord policy.

Can insurance providers reject landlord claims for tenant damage?

Insurers might refuse to cover landlord insurance claims related to tenant damage if the policy doesn't cover accidental tenant damage, if the damage was intentional, or if there are drawn-out disputes about the damage's cause or cost.

Important Note: This post is for informational and educational purposes only. It should not be taken as legal, accounting, or tax advice, nor should it be used as a substitute for such services. Always consult your own legal, accounting, or tax counsel before taking any action based on this information.

Nichole Stohler

Nichole co-founded Gateway Private Equity Group, with a history of investments in single-family and multi-family properties, and now a specialization in hotel real estate investments. She is also the creator of, a blog dedicated to real estate investing.

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