As a landlord, it is crucial that you are properly insured. After all, you do not want to get stuck paying out-of-pocket for a tenant’s personal property in the event of a loss. This can get very expensive very quickly. So the question is, “What Insurance do I need as a Landlord?” First and foremost, you should require that all of your tenants have insurance of their own. However, you should never rely on this fact. Remember, it is always better to be safe than sorry.
- First Party Insurance: Every landlord should have property, or first party, insurance. This provides coverage for both the building and any of the landlord’s personal property within the building. This type of insurance, however, typically excludes a tenant’s personal property lost as a result of a force outside the control of the landlord. Remember to ensure that your property insurance covers a tenant’s personal property if the loss is attributed to the landlord.
- Third Party Insurance: This type of insurance protects a landlord against lawsuits from other people, covering the cost of defense and any liability owed to a third party. While many states, including Pennsylvania, find a landlord out of possession “is generally not responsible for injuries suffered by a business invitee on the leased property,” there are more than a few exceptions to this rule. Henze v. Texaco, Inc., 352 Pa. Super. 538, 541, 508 A.2d 1200 (Pa. Super. Ct. 1986).
To find out exactly what insurance coverage you need as a landlord, we recommend speaking with an experienced insurance recovery attorney, contact us.