Insurance for Rental Properties: Coverage for 3rd Party Liability

2007-03-08 10:33:40

( Insurance )



CONTROLLING YOUR PROPERTY

The main issue for owner’s and landlords renting out rooms and houses is control. Because somebody else is using your property as a place of residence, you barely have any over what goes on inside the rented space.

While you as owner can set some ground rules, these rules are still not enough to prevent misfortunes from happening. This is the main reason why you should have insurance for your rented properties.

Insurance for rental properties addresses the special needs of owners and landlords whose properties are being used by someone else. One thing to especially look out for when looking for insurance for rental properties is adequate coverage for third-party liability cases.

THIRD-PARTY LIABILITY

Third-party liability cases are particularly distressing because you are being held liable for something you have no direct involvement with. If the guests of your tenants are injured, you may be held liable and sued for damages. Imagine how upsetting it could be if that happens especially when you have been a responsible and careful owner. As an owner or landlord, you definitely must have insurance for these circumstances.

Apart from providing protection from damage and loss to property, the good thing about insurance for rental properties is that it also has provisions for covering the legal costs of a liability case should one be filed against you. Insurance for rental properties will pay for the medical treatment of the injured party, and it will as shoulder the costs of hiring a defense lawyer should it come to that.

However, this insurance for third-party liability is not part of a standard insurance for rental properties; it is usually an option that you can add to a normal for rental properties for an additional cost. Make sure that you specifically ask for this when buying insurance for rental properties. Because without it, your insurance for rental properties becomes just like any other ordinary insurance plan.


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