Landlord Insurance

Insurance

Tips from the Experts on Renters Insurance

Landlord's insurance on the dwelling usually covers damage to the building, and protects landlord against claims when tenant or other person suffers injury or damage because of a condition for which landlord is responsible. Landlord's insurance almost never covers the tenant's possessions - furniture, clothing, etc. - in the dwelling.

A tenant wishing to insure against loss caused by hazards to property such as fire, burglary, etc., can do so. Most commercial insurance companies offer the following coverage to tenants: 1) reimbursement for loss of or damage to personal property on the premises where the damage is caused by fire, burglary, theft, vandalism, lightning, sewage back-up, basement leaks, waterbed leaks, negligence of another tenant, etc. The policy may also cover loss of or damage to tenant's personal property off the premises.

2) reimbursement for tenant's extra living expenses if caused by a hazard insured against; 3) protection for tenant against a claim by another person where the claim arises from an accident or because of tenant's negligence occurring on or away from the premises. For example, tenant bakes a cake, leaves in some nutshells and a guest breaks a tooth on a shell; or tenant is responsible for a fire that damages the building where he lives, and landlord sues. (Accidents arising out of business pursuits, certain water craft, and most motor vehicles are generally not covered.)

The standard policy usually contains a deductible clause, for example, $100, so that the company will be liable only when the loss exceeds $100, and then only for the amount in excess of $100.

Tenant may be eligible for special credits on the policy if the dwelling unit has smoke alarms, burglary alarms, deadbolt locks, if tenant is over a certain age, or if tenant's motor vehicle is insured by the same company.

Each policy contains a precise description of the extent of coverage. Tenant should read it carefully to be sure that the particular hazards he is concerned about will be covered to the extent he wishes.

In areas with high rates of crime and vandalism, commercial insurance companies may be unwilling to provide insurance. In such cases, burglary and robbery insurance may be obtained through the Federal Crime Insurance Program. Also, basic coverage (fire and vandalism) may be obtained by tenants and landlords through the Joint Insurance Association of Maryland.

Following is a summary of these programs:

The Federal Crime Insurance Program

Established in 1971. It is administered by the Federal Insurance Administration, which is part of the Federal Emergency Management Agency. Coverage under this program is available in areas where it is difficult to obtain commercial and residential crime insurance. Residents of Maryland are eligible for this insurance.

Protective devices required

Before residential property will be insured, certain doors and windows must be equipped with special locking devices.

Amount of coverage

Residential policies are available in amounts up to $10,000. For each separate occurrence, claims are subject to a deduction of $100 or 5% of the gross amount of the loss, whichever is greater. Personal property is covered after application of the deduction. Loss of money is covered up to $200. There are special limits for single items of jewelry, furs, antiques, and securities.

Covered causes of loss

Burglary

Taking property from the home of the insured by means of a felonious entry. The premises must have been entered forcibly, and there must be physical marks of forced entry at the place of entry.

Robbery

The taking of property by violence inflicted on the insured, by putting the insured in fear of violence, by other theft committed in the insured's presence; or from the body or custody of an insured who has been killed or made unconscious

Damage to the premises resulting from an actual or attempted burglary or robbery.

Coverage under this program is available both to tenants and to owners of dwellings.

For additional information, write or call (toll free)

Federal Crime Insurance
P.O. Box 6301
Rockville, MD 20849-6301

Toll-free telephone numbers
1-800-638-8780
1-800-638-8783 (TDD - hearing impaired)

The Joint Insurance Association

Established in 1968 to carry out the provisions of a state law, the Maryland Property Insurance Availability Act. The Association provides essential property insurance coverage for property owners and tenants who are unable to obtain adequate insurance for their property. The program is administered by a governing committee under the supervision of the Insurance Commissioner of Maryland. The Joint Insurance Association operates statewide.

Procedure

Application for insurance may be obtained from the Joint Insurance Association, 210 N. Charles Street, Suite 1001, Baltimore 21201-4012. Applicant must be at least 18 years old. Telephone: (410) 539-6808. From outside the Baltimore area: 1-800-492-5670.

The property will be inspected, and the applicant or another adult must be present during the inspection.

If the property is found to be ineligible for insurance, the applicant will be told the reason for rejection and the corrections needed for approval.

Reasons for rejection

Physical condition of the property, such as faulty or deteriorated wiring, heating system, or construction, or evidence of general deterioration or unrepaired damage from previous fires;

Unsatisfactory use or housekeeping, such as overcrowding, vacancy, or storage of rubbish or flammable materials;

Violation of law or public policy by the owner or occupant.

NOTE: A deteriorating neighborhood or environmental hazards beyond the control of the property owner or tenant are not grounds for rejection.

Source: Baltimore Neighborhoods (BNI) - See main Landlord Tenant section for more information on BNI.

Last date legally reviewed: April, 2001 - BNI

Last date of legal review ( )

Source: Maryland Legal Assistance Network (MLAN)