Are you a wealthy person? Nice home, three cars, and a few investments in rental property. Here’s a question for you: should you have landlords liability insurance or not? No matter how careful and judicious you may be about your rental properties you should do a quick reread of Murphy’s Law: If anything can go wrong, it will.
There are two schools of thought when it comes to liability insurance. One school says: it’s necessary for peace of mind. The other school may be a member in good standing of the naysayers club who say: it’s a waste of money. In any case a landlord should stay on top of the liability laws in their state to keep informed of any changes.
One thing apparent is that any tenant lawsuit filed in courts can be a devastating blow to any landlord.
That dreaded phone call from one of your tenants informing you he tripped over some uneven cement on a wet driveway you had watered last night and broke his leg can trigger a quick migraine. Now what?
You may hear the sound of a bank vault opening and lots of money leaving your savings account, so you panic.
But is it really your fault and can your tenant really sue and collect for their injuries? In the eyes of the law, perhaps not. If you made regular inspections on your rental property and your tenant didn’t inform you about the cement, you may not be responsible.
On the other hand, if you were a lax and negligent landlord with the propensity to let things go, some legal documents may be forthcoming from your tenants attorney. However, even if the tenant wins the lawsuit, your liability insurance company policy is the one passing out the Ben Frankin bills, not you.
