Allowing pets in your rental property can be beneficial as it expands your pool of prospective tenants, but you will have to worry about the potential damage caused by the tenant's pet and the costs it may incur. This calls into question how tenants can minimize such costs with pet liability insurance or maybe even renters insurance for financial protection. The question for you as a landlord becomes: should I require my tenants to carry pet insurance?
Benefits of Requiring Pet Liability Insurance
Liability Coverage for Accidents or Injuries
Even responsible pet owners can't guarantee that their pet will never cause an incident such as bites or scratches, especially if the animal acts in distress. Pet liability insurance for renters can cover accidents or injuries within the premises of the rental unit, or towards other tenants in the rental property.
Preventive Care
It would give the pet owner, landlord, and other tenants peace of mind knowing that a pet has all the necessary vaccinations, and certain pet insurance plans include that along with flea and tick prevention.
Tenant Retention
Pet liability insurance is a relatively tenant-friendly policy, and most renters will gladly get it if it means their pets or service animals can be kept safe and healthy. Not only will this encourage potential tenants to rent with you, but you’ll also likely retain more of your current tenants.
Pet Liability Coverage
Medical Bills
When a tenant's pet injures someone, pet liability coverage can reduce or cover the medical costs completely. Pet coverage can cover dog bites, scratches, or distress that lead to accidents, although that may depend on the insurance the tenant gets.
Property Damage
Pet owners won't always be home to watch over their pets or prevent pet damage to your rental property. Pet liability insurance can cover the costs for repairing the mentioned damages, or at least do so partially.
Damages can come in the form of scratches on the wall, stains on the floor, damage to furniture, or messes caused by the pet. The amount the insurance covers will depend on the insurance company or the policy they provide.
Legal Fees
Medical expenses for the harm a pet causes are not the worst that can happen. A pet owner may face legal troubles if someone sues them for damages. Purchasing pet liability insurance might be a good way to lessen the legal fees for pet-related issues.
San Diego residents are advised to get pet insurance or a renters insurance policy that covers pets, especially since California is the number one state in the US with the most dog injury claims in 2022, as per USA Today.
Which Pet Liability Insurance to Get
Standalone Pet Insurance
There are available standalone pet liability insurance for renters, but as indicated in the name, they will only cover issues regarding pets and not tenants. Without renters insurance, they will have to pay for damages or injuries caused themselves or damages to their personal property.
Renters Insurance Policy
Some renter's insurance policies come with pet liability coverage, although that may depend on the kind of pet. Exotic pets like snakes, spiders, and scorpions, for instance, aren't part of most renters insurance coverage.
While animal liability insurance can be beneficial to pet owners, renters insurance as a whole brings more to the table as it also answers for damages, medical bills, and legal fees that the tenant may need if there are incidents within the rental unit.
How Much Does Pet Insurance Cost?
The average pet liability insurance cost is around $55 per month for dogs in California, according to Forbes. It pays for an annual coverage of $5,000, a $250 deductible, and an 80% level for reimbursement, although that ultimately depends on the renter's insurance company.
The amount will still depend on the animal liability insurance you purchase and the insurance company, and you might need to get more expensive ones depending on the breed of your pet. For dogs, some breeds are believed to show more aggressive behavior. Those breeds include:
- Akita
- Alaskan Malamute
- American Staffordshire Terrier
- Bulldogs
- Cane Corso
- Chow Chow
- Doberman Pinscher
- German Shepherd
- Labrador Retriever
- Rottweiler
Should I Require Tenants to Carry Renters Insurance Instead?
It is generally better to cover all your bases and require your tenants to have an umbrella policy. Liability insurance for renters which includes pet liability coverage can pay for things like:
- Damage or loss of personal items due to fire, theft, smoke, or other incidents caused by outside forces
- Legal fees in the event of an accident within their dwelling unit caused by the tenant or their pets
- No-fault medical coverage when the tenant, their pet, or their family member causes bodily injury to you or other tenants
- Additional living expenses such as temporary housing in case the rental unit becomes inhabitable due to a covered loss
Pet Insurance FAQs
Does renters insurance cover animal liability?
That will depend on the insurance providers tenants buy their plan from. Many insurance companies allow clients to extend their plans to provide coverage for property damage or other pet-related harm.
Does pet insurance cover all breeds?
Standard renters insurance policies usually cover dogs or cats, although certain breeds are exempt from some. Exotic animals might not be included in the pet insurance, so be sure to ask the company before you purchase one.
How to find the best insurance policies?
Tenants or applicants can consult an insurance agent. They can ask which pet or renters policy covers dogs or other animals they might have. This is recommended especially since some pet insurance plans only cover certain dog breeds.
Should pet-friendly rentals require insurance?
It is not required by law, but it is recommended. It can cover legal expenses, medical costs, and other pet-related damage that may occur.
Does pet insurance cover all damages a pet causes?
Not all. Some may require tenants to get extra coverage to answer for extensive pet damages, and it may even depend on the dog's breed. It's best to research insurance companies that offer different coverage options.
Hiring a Property Manager to Enforce Pet Rules
Your tenants will only ever need to use insurance if their pets misbehave, but a lot of the incidents or damages are easily avoidable by putting down rules and enforcing them. To do so, property management companies like Harland Property Management conduct routine property checks.
We can assess damages that tenants need to address, as well as offer access to vendors that can perform the repairs. You can get a free rental analysis from us or schedule a consultation to learn more about how we can assist with your rental business.
