Does Landlord Insurance Cover Water Damage?

Landlord insurance can help cover a variety of damages to your property. But does landlord insurance cover water damage?

Well, yes and no.

Water damage is not only expensive, but it’s also one of the most common claims for landlords.

The best way to ensure that your Brooklyn property is protected is to have the right landlord insurance for your unique needs. That way, when winter comes and pipes burst, you can replace the damages and recoup the lost income.

The good news is, yes, this type of insurance helps cover water damage, but it all depends on the type of water damage.

In this blog post, we’ll talk about the different types of water damage and how landlord insurance can help.

What Types of Water Damage Are Covered By My Rental Property Insurance?

The type of policy you have will determine the extent of your coverage. But as a general rule, water damage is covered under a landlord insurance policy as long as it’s sudden and accidental.

There are two main types of sudden and accidental water damage:

  • Burst pipes
  • Severe weather conditions

Burst Pipes: If a pipe ruptures in your rental property, landlord insurance can help cover the cost of repairs. In most cases, the insurance will also cover the cost of any water damage resulting from the compromised pipe.

Severe Weather Conditions: If your property is damaged by extreme weather conditions, such as a roof blown off in a hurricane or tornado, landlord insurance can help cover the cost of repairs. In most cases, the insurance will also cover the cost of any water damage resulting from the severe weather.

What Types of Water Damage Are Not Covered By Landlord Insurance?

Now that we’ve talked about the types of water damage that are covered by landlord insurance let’s talk about the type of water damage that is not covered.

  • Flooding: Unfortunately, landlord insurance typically doesn’t cover flooding. Flooding is understood to be an overflow of a body of water. So, if you live in an area prone to flooding, you may want to purchase flood insurance.
  • Leaking Roof: A leaking roof is not covered by landlord insurance. If you have a leaking roof, you will need to repair it at your own expense.
  • Mold: Mold is caused by damp conditions, but it takes time to grow. Since it occurs after a prolonged time, it’s not covered by landlord insurance. If you have mold in your rental property, you will need to remove it at your own expense.

Basically, any water damage that occurs after a prolonged period of time will not be covered.

What if My Tenant is Injured Due to Water on My Property?

Let’s say that there was an ice storm last night and a guest to the property slips and falls on your steps.

If the guest is injured due to water on your property, your landlord insurance policy may help cover the cost of their medical expenses and could cover your legal fees if that guest sues you. In most cases, the insurance will also cover the cost of any property damage that occurred as a result of the accident.

However, it is important to note that not all landlord insurance policies are created equal. Some policies may exclude certain types of accidents or injuries.

Be sure to speak with a qualified insurance expert so they can walk you through the coverages and exceptions, guiding you to the perfect policy for your unique needs.

Is Landlord Insurance Legally Required?

The state of New York law does not require landlords to purchase landlord insurance. But before forgoing coverage, landlords should check with their mortgage company to see if they require a policy. We are not aware of any mortgage company that does not require their clients to carry insurance.

Also, your tenants may ask about landlord insurance policies. Because even though this type of insurance doesn’t cover a tenant’s possessions, it can cover injuries sustained on the rental property.

Other Types of Useful Insurance for Landlords

Landlord insurance will help keep your property safe, but there are additional policies you may consider if you want to secure additional protection, including:

Umbrella Policy

Landlord insurance has its limits. So, adding umbrella insurance is a great way to ensure you’re completely covered. Though it’s usually a secondary policy, umbrella insurance may also work as the primary insurance for anything not covered by the primary policy.

Disaster Insurance

If you live in Brooklyn, know that earthquakes are rare. But if your rental unit is within two miles of a coastline, flood damage is a threat. Adding a disaster insurance policy or Flood Insurance Policy can help protect your property against this type of damage.

Vandalism Rider

Vandalism isn’t always covered by typical landlord insurance.

How To Get Landlord Insurance

So, does landlord insurance cover water damage? The truth is, every scenario is different.

But in general, landlord insurance is worth the investment. It shields a landlord’s investment by protecting their physical property, minimizing financial blows, and helping to recoup lost income should a unit temporarily become unrentable.

Ready to put your mind at ease? Connect with an experienced agent from Lincoln Brokerage today and learn more about how we can help protect your properties with a Brooklyn landlord insurance policy unique to your specific needs.

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