Tenant Legal Liability Insurance Products

Tenant Legal Liability insurance provides coverage for loss or damage caused to rented properties. When someone rents a property, they may purchase a separate Contents insurance policy but they are also legally liable for any loss or damage caused to the property. Home insurance policies are not suitable for those renting properties, however a Tenant Legal Liability insurance policy will be more appropriate in filling the gaps in coverage.

 

Unlike Renter’s insurance, Tenant Legal Liability provides policyholders with the option of insuring a building that is not lived in by the owner. However the only type of loss or damaged that can be covered are those caused by the tenant.

Tenant Legal Liability insurance is generally for:

 

• Landlords
• Property owners
• Property management companies

Those renting out, leasing or managing properties for private use may need financial protection in the case of tenant-caused property damage losses. Some landlords or property owners may add the premium amounts owed to the rent as an additional expense to the property.

Depending on the tenancy agreement, landlords may request payments for costs towards repairs. Tenants may take out their own Tenant Liability insurance policy so that they are covered if they cause any damage to the property or furniture, fittings and fittings. While a deposit may cover any loss or damage caused during a tenant’s stay, the amount may not be enough to cover the costs of any accidental damage caused.

The benefit of a landlord taking out a Tenant Legal Liability insurance policy over a Tenant taking out Renter’s insurance is that the coverage limits are higher with the former.

A Tenant Legal Liability insurance policy will generally cover loss or damage caused by a tenant to a property, furniture or fixtures belonging to a landlord against the following:

 

• Fire
• Water
• Smoke
• Explosions
• Leaks

As a Tenant Legal Liability insurance policy is specific there are certain types or causes of loss and damage are not generally included, including:

 

• intentional damage
• damage caused whilst the property is unoccupied for more than 30 days
• gradual wear and tear
• existing damage
• damage caused by pets
• damage caused to property not belonging to the landlord

A Tenant Legal Liability insurance policy will be determined based on the following:

• age of the property
• size of the property
• location of the property
• value of covered items (eg furniture, fittings, fixtures)

As well as being a standalone insurance policy, Tenant Legal Liability can also be combined or added onto a Commercial General Liability possible where appropriate. A deductible will normally be required for standalone policies.