What Happens If a Tenant Causes Property Damage?
Understand what’s covered by insurance, what isn’t, and how to protect your property from tenant-related loss
Even good tenants can cause damage—accidentally or otherwise. Whether it’s a kitchen fire from unattended cooking or holes in walls after a move-out, landlords need to know who pays, how insurance applies, and what steps they can take to minimize loss.
This matters any time you hand over keys. You might think about this the next time you screen a tenant or inspect your unit after a lease ends.
Types of Damage and Who's Responsible
Damage caused by tenants generally falls into two categories:
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Accidental damage such as spilling water on hardwood floors, breaking a window, or damaging drywall while moving furniture
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Intentional or negligent damage like punching holes in walls, removing fixtures, or leaving behind extensive mess
Tenants are usually responsible for repairing or paying for damage they cause beyond normal wear and tear. However, recovering those costs may not always be straightforward.
How Insurance Comes Into Play
Landlord insurance may cover certain types of tenant damage—but not all. Here's how it typically breaks down:
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Covered: Fire, water, or smoke damage caused accidentally by the tenant if it falls under an insured peril like fire or sudden water discharge
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Not covered: Wear and tear, gradual deterioration, or intentional damage unless you have a specific tenant vandalism endorsement
| Type of Damage | Covered by Landlord Insurance? |
|---|---|
| Accidental kitchen fire | Yes, under insured perils like fire |
| Holes in walls or broken doors | No, unless vandalism coverage is added |
| Overflowed bathtub or minor leaks | Sometimes, depending on policy |
| General wear and tear | Never covered |
What You Can Do to Protect Yourself
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Collect a security deposit and document the condition of the unit before move-in and after move-out
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Inspect the property regularly, especially for longer tenancies
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Include damage clauses in your lease agreement outlining tenant responsibilities
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Add tenant vandalism coverage to your landlord insurance if available
Caution: If damage occurs and the tenant is no longer cooperative or cannot pay, pursuing legal recovery can be costly and time-consuming. Insurance helps only when the right endorsements are in place.
Tenant damage is an unfortunate but common part of property management. Understanding your coverage and setting clear expectations with renters makes all the difference between manageable issues and expensive setbacks.