Landlords usually insure their rental properties to be safe from any damages to the property whether is damaged by a tenant or any other damages. So the question is: does renter's insurance cover tenant damage and what types of damages are excluded from renter's insurance? The most important thing to know is what to do if the tenant damages the property. The biggest misconception regarding the renter's insurance is that the landlords are safe from any tenant damage to the property and in case of any tenant damage the insurance will cover it and pay the compensation but the ground reality of the renter's insurance is completely different. For that particular reason, most of the time landlord returns the deposited security to the tenant and is confident that the renter's insurance will pay the compensation. The renter's insurance doesn't cover the Intentional Tenant Damage and Wear-and-Tear damage. Also, very few policies of renter's insurance cover the intentional tenant damage or help in the civil suit. Otherwise, the renter's insurance only covers the accidental damage to the property. The tenant’s damage can be the following:
• Intentional tenant damage
• Accidental damage
• Wear and tear tenant damage
• Intentional tenant damage
• Accidental damage
• Wear and tear tenant damage
Intentional Tenant Damage
Intentional tenant damage means that the tenant is aware of the consequences of his action but still intentionally damages the property. For example damage to the walls, wallpaper, spray on the wall or damage the ceiling, etc. It usually happens due to complete negligence or aggressive actions from the tenant’s side towards the properties of the rental home. The intentional tenant damage can also be called vandalism. Only very few policies of renter’s insurance protect the intentional tenant damage. That means, it is usually excluded and the landlord should file a civil suit against the tenant. In these cases, the landlord should never return the deposited security until the total damages are calculated. If the deposited security is not enough to recover the damages then the landlord should file a civil suit and recover the damages.
Accidental Damage of the Property
Accidental damage of property means any accident that happened in the rental property does not involve the intentional or negligent action of the tenant. For example leakage of the water pipe that damages the wall or the ceiling, gas leakage that would cause fire, etc. The renter's insurance covers the accidental damage and pays full compensation to the landlord. In the case of accidental damage, the landlord should contact the insurance company and claim for the recovery of damages by stating the complete description, the reason for damages, etc. In these accidental causes, the landlord can't claim anything against the tenants. Tenants are not legally bound to pay compensation against these damages. These accidental damages can only be recovered with the renter's insurance so the landlord should not waste time in other legal proceedings, they can easily file their case with the insurance company.
Wear and Tear Tenant Damage
Wear and Tear tenant damage is the habitual damage of the tenant. These are the typical changes that happen due to everyday life and can occur in all types of properties over a while and these are the things that are simply unavoidable. Things that fall into this category include light scratches or stains, worn carpets, scuffed floors, worn or lose parts of the window, and minor scrapes in the paint. These damages are not covered in the renter's insurance and the insurance company is not legally bound to pay any compensation. In these types of damages, the landlord can recover the damages from the deposited security of the tenant. If the deposited security is not enough to recover the damages then the landlord can file a civil suit against the tenant.