The 3 Most Common Landlord Insurance Claims and How to Prevent Them
Summary
This article from BiggerPockets discusses the three most common landlord insurance claims: weather-related damage, water damage, and theft/vandalism. Hosts should take preventative measures like regular inspections, security systems, and tenant screening to avoid costly claims and protect their investments.
Key Insights
- •Theft, vandalism, and malicious mischief are common issues, especially for vacant properties.
- •Weather-related damage (hail, windstorms) and water damage (burst pipes, leaks) are the leading causes of insurance claims for landlords.
- •Landlords often underestimate the true cost of a claim, including deductibles, lost rent, and higher premiums. Typical claim averages: Weather-related repairs: $5,000 to $15,000, Water damage with remediation: $10,000 to $20,000, Vandalism or theft: $2,000 to $5,000
Action Items
- ✓Invest in visible security (cameras, lights), screen tenants carefully, check vacant units weekly, and build neighborhood connections.Effort: mediumImpact: medium
- ✓Inspect plumbing seasonally, winterize in cold climates, maintain gutters, and educate tenants to report leaks immediately.Effort: lowImpact: medium
- ✓Schedule biannual roof inspections, trim trees aggressively (within 10 feet of the structure), and document all weather events with photos and receipts.Effort: lowImpact: medium
Tools & Resources
- →Steadily: The article mentions Steadily as a specialized landlord insurance provider.
Common Mistakes
- ⚠Landlords might underestimate the true costs associated with insurance claims beyond just the repair costs, leading to financial strain.
More from Hosting Operations
MakeMyTrip and Ixigo are partnering with OpenAI to integrate AI across their platforms. This collaboration aims to revolutionize the travel experience, supporting features like trip planning and booking. The integration is designed to personalize and convert inspiration into confirmed bookings, offering personalized outcomes at scale.
An Airbnb host faced an unusual guest request, uncovering a potential 'big problem' impacting their operations. Details of the odd request and the subsequent realization about its negative consequences for the host's business model are presented. Further investigation revealed a significant issue that hosts should be aware of.
This article from WDSU focuses on identifying potential scams related to spring break travel. It highlights red flags travelers should be aware of when booking accommodations, such as unrealistic prices or demands for unconventional payment methods. Knowing these potential pitfalls will help hosts and guests alike prevent fraud and ensure a safe and positive booking experience.
Curated by Learn STR by GoStudioM