Does Landlord Insurance Cover Malicious Damage?

What Is Deliberate Harm or Malicious Damage?

Malicious damage is a form of vandalism in which the perpetrator knowingly and deliberately damages property. It is neither unintentional nor unexpected but destructive, reckless, and typically vindictive.

Examples of Malicious Damage include shattered windows, holes punched or kicked into walls, doors removed from their hinges, graffiti, the dumping of trash, and any other intentional destruction or defacement of property. Tenants who commit vandalism are subject to prosecution. In addition to paying restitution, they could face fines or even jail time.

Who Is Responsible for Repairs?

You can pay for the damage with your tenant's security deposit if the damage is not severe. If the cost to repair or replace exceeds the deductible and you do not have insurance, you may be responsible for the difference. However, malicious damage is covered by landlord insurance if purchased in advance.

Some policies may include malicious damage under property damage or vandalism, but you may need to purchase a Malicious Damage Coverage rider separately from other providers. Additionally, some policies may only cover damages caused by tenants, while others will cover damages caused by anyone.

Does Renter's Insurance Cover Intentional Destruction?

Similar to homeowner's insurance, renter's insurance typically covers these three things:

Property Damage – Sudden or accidental damage to personal belongings, furniture, and electronics up to the maximum limit of the policy.

Liability - Medical expenses and legal fees for someone injured on the covered property.

Additional Living Expenses - For example, temporary housing if the home is uninhabitable.

You must be specific regarding coverage type, deductibles, and policy limits. Tenants may also consider including their landlord in their Renters Insurance Policy. Through this additional coverage, both the tenant and landlord are protected if a third party causes damage.

How Can Malicious Damage Be Prevented?

Even though malicious damage is on the rise, there are ways to prevent it. Before entering into a lease agreement, take the following precautions when evaluating prospective tenants:

• Credit Report
• Background Examining
• Request references and verify their accuracy
• Require a large deposit
• Take photographs of the entire dwelling and its appliances prior to moving in.
• Clarify expectations and demonstrate courtesy

Although all of these precautions are essential, a few stand out more than the rest. A thorough background check can prevent the renting of a property to a person with a history of destructive behavior. The substantial deposit requirement could prevent them from engaging in activities that would prevent them from regaining it.

Before anyone moves in, it is crucial to take photographs of the apartment, regardless of the tenant's history. This aids in maintaining a physical record of the apartment's condition as opposed to a verbal claim by either party.