5 Ways To Prevent Landlord Insurance Claims

​Rental homes can be seen as a long-term investment and a solid source of extra income. However, being a landlord can sometimes be challenging, especially since you may encounter conflicts with your tenants, resulting in lawsuits.

If you're a landlord, you must identify and assess vulnerabilities in your operation. It would help if you also took proactive actions to reduce the possibility of being sued by renters and prospective tenants. 

Don't worry, though, since you may significantly reduce your risk using fair, consistent, and legally acceptable business methods. Here's how to do it:

1. Keep Sufficient Insurance Coverage 
   Aside from purchasing property damage insurance, you need to ensure that you are protected against lawsuits filed by a renter. 
   
   A tenant may sue you if you do not follow correct eviction procedures, conduct unauthorized entry into a rental property, or hurt someone on the premises. If you are sued, liability insurance should cover the expense of litigation and the damage.
   
   
2. Maintain the Safe and Excellent Condition of Your Property
   As a landlord, you should be knowledgeable and compliant with building and safety codes and state and local health protocols. It would be best to address your tenants' concerns and immediately take action. You should also take the initiative to conduct inspections regularly on your property. 
   
   It would help to keep in mind that landlords are liable for failing to keep tenants safe from unsafe circumstances on a rental property. Most states even mandated it in their laws. 
   
   For example, a tenant got injured from a hazard that the landlord was aware of but didn't warn the tenants. Then, this tenant may be able to claim damages.
   
   
3. Keep Your Property Secure From Criminals
   Courts have held landlords partially liable for crimes committed on their premises if they failed to provide appropriate security. So, you should comply with any local legislation regarding rental property safety procedures. 
   
   
4. Avoid Discrimination
   Discrimination is illegal and may result in significant consequences if you act in this manner. If the potential tenant claims that you are discriminating, they may sue you.
   
   If you aren't already aware, the scope of discrimination includes race, religion, skin color, handicap, and gender. If you deny a customer a place to live for such reasons, you discriminate.
   
   
5. Be Consistent in Your Business Procedures
   You should always use a lease rental agreement that is state-approved or that has been drafted by a real estate attorney. You must also create rules that your tenants should strictly follow. 
   
   If you're removing a tenant from your property, you should consult your state's law regarding this matter. Because each state has different standards, you must abide by your own state's laws. If you do not comply, the renter may initiate a lawsuit against you.

Conclusion
To extend the growth of your rental business, you must follow legally acceptable business practices. You must also look after both your renters and your property.

At Arnold Insurance Agency, LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (318) 965-5953. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Contact us today to go over your specific needs and we are happy to help you find a policy that works for you and your budget!