As the owner of investment real estate, you may have purchased insurance on your properties in order to ensure that you are covered from various physical damages such as fire, tornadoes, and hurricanes. But what about other issues such as legal liability?
Unfortunately, there are a number of instances where landlords could find themselves on the defensive in a lawsuit. Just exactly what could you be held liable for as a rental property owner? Just some of the incidents may include:
- An injury to a tenant or a visitor as a result of a property maintenance issue
- An illness or injury to a tenant or visitor as the result of your failure to keep the property “safe and in good working order”
- An injury to a tenant or a visitor due to landlord negligence
Regardless of whether or not the negligence is willful – and in most cases, it is not – it can still be possible that a tenant or other party may file a lawsuit. In order to help protect yourself from the financial costs of this type of situation, there is landlord liability insurance.
With liability insurance coverage, you may be able to cover the expenses that are associated with legal defense – regardless of whether you are found to be at fault. The cost of legal defense and litigation can be some of the biggest financial risks that a landlord can face – so having this insurance may be well worth the premium cost.
You can also help to protect yourself from legal liability in other ways, too. For example you can ensure that your properties are well-maintained, safe, and well-lit. Providing properties with regular and preventive maintenance can also be key.
One of the best ways to make good use of your time – while still reaping the benefits of your real estate investment – is to use the services of a professional property manager. For more information on how to do so, Contact Us.