The question we are going to cover in this article is:
Does landlord insurance cover eviction costs?
The short answer is: it can.
But it is not necessarily as straightforward as it might seem.
Evicting tenants is not easy with the laws that protect them from you. Having support when you need to evict tenants in the form of a good policy is the answer.
Landlord insurances are very flexible and can be customized to the landlord’s needs and this is obviously a positive thing, but freedom and possibilities also mean that care and attention on what we are choosing are essential.
The best way to get exactly what we want from what we are paying the insurance company, is by asking the right question, like you did today!
The main parts of landlord insurance are generally three:
But, just as they are, they would not cover eviction costs. All of those parts are very changeable to include more or less.
Landlord insurance is sold in the form of buildings and contents insurance.
Those products generally include the basic of the main parts of the landlord insurance plus some additional parts.
This additional part is the one we want to focus on in this article.
We shouldn’t have expectations, but being prepared for eventualities is simple common sense, especially when, as a landlord, risks are an everyday matter.
Unintentional accidents, damages to the property, repairs etc… are, as already discussed, mostly covered by the basic insurance, but what if the damage came from a care-less tenant?
And what if that care-less tenant kept damaging the property even after warnings?
And what if that tenant will not pay for repairs even after been told it is their responsibility? And what if after all of that, your only solution is to take them to court?
Legal fees are not cheap.
That is a lot of money spent on one single malicious person.
Well, having legal expenses insurance would take care of all of that and therefore would cover also the costs of the fees to get the malicious tenant evicted.
Make sure you have landlord Legal fees bundled in to your insurance and the answer to “Does landlord insurance cover eviction costs?” will be 100% “YES”