Whether you rent out one property or dozens of properties, you will need public liability insurance if you are a property owner. Such a policy will protect you in the event that your tenant or anyone else is injured on your property. It may also pay for legal fees as well as the cost to repair or replace damaged personal property.
Public Liability Insurance for Landlords Saves Money
If someone is hurt on your property, he or she may be entitled to reimbursement for medical bills and other damages. Without an insurance policy, you could be liable for these damages yourself, which means that you could lose your rental properties or other personal belongings to pay the judgement against you. For those who are concerned about the cost of coverage, it may be considered a business expense that may help to reduce your tax burden at the end of the year.
It's Easy to Purchase Public Liability Insurance
Buying public liability insurance online allows you to shop for a policy that fits your needs in a matter of minutes. You can ever compare quotes from a variety of different insurance companies without having to leave home or make multiple phone calls. You can also have questions such as what does public liability insurance cover or how much is landlord insurance in your area answered by a real person through a live chat session. If this is your first time renting a property to a tenant, you may also learn more about what is landlord insurance to ensure that you find a policy that fits your needs and budget.
Public Liability Insurance Can Complement Business Assets Insurance Policies
A general business liability policy ensures that you are covered in the event that someone is hurt on your property. However, it may not necessarily cover your legal fees or have the same high coverage limits that a public liability insurance policy will have. It may be a good idea to work with a insurance brokerage company to buy both a general liability and a public liability policy at the same time. If you buy both policies from the same company, it may be possible to get a bundling discount.
You Could Be Liable Whether You Knew About a Dangerous Condition or Not
Typically, a property owner is liable for anything that happens on his or her property regardless of whether or not he or she participates. For instance, a landlord may be liable if a tenant sells drugs or has dangerous animals on the property. It may be harder for a landlord to escape liability for damages if he or she knew or should have known that a dangerous condition existed on the property. It is also possible that a court will use strict liability standards in any lawsuit brought against a landlord. Therefore, having public liability insurance may prevent a surprise lawsuit from ruining a property owner's finances.
You Should Assume That Accidents Will Happen
While you can't predict what types of accidents will occur on your property, you can be sure that they will happen from time to time. In some cases, the accident will involve a balcony railing that gave without warning or inadequate wiring is the leading cause of electrical fires. In other cases, you may have an aloof tenant who leaves his or her kid's toys out in the yard where others could be hurt. Regardless of how an accident occurs, having an insurance policy is simply good planning and should be part of any landlord's business plan.
Being a landlord is more than collecting rent checks each month. Instead, you have to think like a businessperson and make sure that you are reducing your risk wherever possible. With a public liability insurance policy, you can rest easy knowing that an accident on your property won't result in a judgement that you can't afford to pay.