Landlord Liability 101: What Every Investor Needs to Know
Summary
This article emphasizes the importance of landlord liability insurance for short-term rental hosts to protect against lawsuits arising from injuries or property damage on their properties. It explains what landlord liability insurance covers, what it doesn't, and how much coverage hosts should consider, with a minimum of $1 million per occurrence recommended. Hosts should review their current insurance policies to ensure they have adequate coverage and understand potential exclusions.
Key Insights
- •The standard recommendation is a minimum of $1 million per occurrence and $2 million annual aggregate per location for premises liability.
- •Going from $1 million to $2 million in coverage might only cost an extra $50 to $100 per year, a small price to pay for double the protection.
Action Items
- ✓Review your current insurance policy to ensure adequate liability coverage for your rental properties.Effort: lowImpact: high
- ✓Consider increasing your liability coverage to a minimum of $1 million per occurrence and $2 million annual aggregate per location.Effort: lowImpact: high
Tools & Resources
- →NREIG: National Real Estate Insurance Group (NREIG) is mentioned as a go-to for real estate investors.
Common Mistakes
- ⚠Landlords who underinsure because of cost savings, especially if they have multiple properties.
- ⚠Landlords who only have homeowner's insurance and think they are adequately covered for rental properties.
More from Regulations & Compliance
Carson City, Nevada, is refining its short-term rental regulations. City supervisors are currently reviewing and modifying the local ordinance during a retreat. This review aims to address operational aspects, potentially impacting local hosts through new or revised rules, emphasizing compliance.
A 21-unit vacation rental in Dunedin, Florida, has been approved, signaling potential growth in the local short-term rental market. This approval could lead to increased accommodation options for tourists visiting the area. This news could also influence local regulations.
St. Louis aldermen have approved a short-term rental fee, though a legal battle over existing rules continues. This indicates a focus on regulating the STR market within the city. Hosts in St. Louis should be aware of these new fees, which may impact their profitability. Find out how this affects your STR business.
Curated by Learn STR by GoStudioM