Rental Property Public Liability Insurance
Landlords commonly obtain property insurance. In fact, they rarely fail to insure the building and its contents from tenant harm. However, purchasing public liability insurance may be overlooked, which in cases of tenant injury, can leave a landlord wide open to lawsuits.
Of course, when a tenant or member of the general public is injured due to negligence on a rental property, they are completely within their rights to sue for damages – and these lawsuits can become very expensive very quickly and may lead to bankruptcy. For this reason, insuring against any injuries that may occur on the property could save the landlord from bankruptcy and legal headaches.
Public Liability Coverage
Although your property may be well-maintained, all landlords know that maintenance is an ongoing effort. Whereas your property may be in perfect condition one week, the next week may present you with many maintenance issues. The ongoing nature of property maintenance can leave your tenants, their guests and the general public open to safety issues, no matter how well you maintain the property.
This is where public liability coverage comes in. Public liability insurance will cover the landlord in cases of tenant and general public injury due to property negligence. This includes covering damages due to the tenant, loss of earnings, and legal costs. Additionally, damages to the property as associated with the claim may also be covered.
Types of Injuries Covered
Most commonly, public liability insurance covers slips, trips and falls due to property neglect. Some examples of property neglect that you may be responsible for in the case of tenant injury include:
• A loose stair tread or an improperly affixed stair railing
• Carpeting or other flooring that is threadbare or buckling
• Loose pavers or buckling concrete on walkways
• Roots and other landscape materials on walkways that may cause trip hazards
• Improper usage of flooring materials, which may cause slips when wet
Many other improperly maintained portions of your rental property may also lead to injuries and lawsuits, including low-hanging branches, loose baseboards, peeling paint and any other maintenance issues that could prove harmful. Public liability insurance can help protect you and reimburse tenants for any of these negligence-related claims.
Due Diligence
In addition to purchasing public liability insurance, landlords should maintain the property as necessary. Preventing claims is as important as insuring yourself against claims. Doing so keeps premiums low and protects you, your business, and your tenants from harm.
Therefore, landlords should still maintain the property as much as possible, including seeking out and fixing any hazards that may cause slips, trips and falls. To accomplish this maintenance, landlords need to complete the following:
• Assess the dangers – Walking through the property and assessing where improvements can be made is the first step to preventing accidents.
• List the dangers by importance – Next, listing the hazards from the most hazardous to the least can help the landlord determine where to begin repairs.
• Complete the maintenance – Finally, landlords should complete the maintenance necessary.
Following these steps will allow landlords to complete necessary maintenance, protect themselves from lawsuits, protect tenants from harm and protect the business from bankruptcy. Additionally, to cover any injuries that may occur, purchasing public liability insurance may be essential to business success.
