While homeowners are relieved of all responsibility to their property once it’s sold, landlords are only allowing tenants to occupy the space temporarily. Therefore, they are still liable for the condition of the building. While tenants can protect their belongings with renters insurance, landlords are entitled to their own protection. Here’s what you need to know about liability insurance.
What Is Liability Insurance?
Even though tenants are often heavily vetted before their application is approved, landlords need liability insurance. Essentially, this policy will help pay for medical bills and other expenses that may arise if the landlord is found legally responsible for an injury or accident that occurred in their building.
What Does It Cover?
For example, a tenant may fall down the stairs because of a broken step or get injured by a faulty window. If they wind up in the hospital and have to pay a hefty bill, they may turn to their landlord to help them cover the costs. If they were able to prove the landlord was negligent—for example, the landlord knew about the defect and didn’t schedule repairs or alert the tenants—the landlord would be held liable for the medical expenses and property damage caused by the accident. However, with liability insurance, the landlord’s policy would kick in, so they wouldn’t have to cover the costs out of pocket. The insurance policy may also help the landlord pay for legal fees.
If a tenant in the building is performing illegal activities, and another tenant learns that the landlord is aware and isn’t taking action, they could file a lawsuit against them. However, with the right liability insurance policy, they can avoid the financial consequences.
If you’re a landlord and need liability insurance, get in touch with Consolidated Agency Inc in Rochester, NY, today. Serving Monroe County, this agency has been helping clients shop from a wide range of insurance carriers since 1988. Call (585) 467-4110 to discuss your options. Visit the website to learn more about their services.