If you rent or lease a house, what insurance is necessary to CYA if there is an electrical fire that destroys the tenants personal property?

This is a hypothetical question, as I have concerns before holding onto any properties for rentals.

In our state,CT & MA, the tenant obtains their own insurance. Rental insurance covers their guests and their property for a very low price. Mine is less than 140 /yr.

You should have liability, property and prsonal property insurance for your items on the premesis.

Tenants stuff is tenants problem.

I even have a special place in my lease for the tenants to initial that they specifically understand this!


So the only way I might have an issue is if there was a problem I knew about and did not take care of (negligence). That makes me feel much better about renting rehabs.

probably worth it have a personal liability umbrellas policy. One of the nice feature is it covers the legal fees.

Its a bit tough to find these policies if you have a lot of properties. I pay $600/yr and covers 7 houses ($2M liability).

Let face it, if your rental house burns down and you tenants has lost everything, there is a high probablity they will sued you and make all orts of outrageous claims. In their eyes, they will have nothing to lose and everything to gain.

You might want to put your property into a trust, the trust gives you armor if you are sued, you will not be personally liable. Also I have heard of horror stories where there is an umbrella for all properties.

If you are sued or something happens to one of your properties all of your properties are liable to losing insurance at once.