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
- •Weather-related damage (hail, windstorms) and water damage (burst pipes, leaks) are the leading causes of insurance claims for landlords.
- •Theft, vandalism, and malicious mischief are common issues, especially for vacant properties.
- •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
- ✓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
- ✓Inspect plumbing seasonally, winterize in cold climates, maintain gutters, and educate tenants to report leaks immediately.Effort: lowImpact: medium
- ✓Invest in visible security (cameras, lights), screen tenants carefully, check vacant units weekly, and build neighborhood connections.Effort: mediumImpact: medium
Tools & Resources
- →Steadily: The article mentions Steadily as a specialized landlord insurance provider.
Watch Out For
- ⚠Landlords might underestimate the true costs associated with insurance claims beyond just the repair costs, leading to financial strain.
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