What Happens to Your Insurance When a Tenant Sues You?

As a landlord, facing a lawsuit from a tenant can be stressful and confusing. Understanding how your insurance may respond is crucial for protecting your investment and peace of mind. At TS Insurance, we help Texas landlords, property managers, and real estate investors navigate these situations with confidence.

How Landlord Insurance Responds to Tenant Lawsuits

When a tenant sues you, whether for injuries, property damage, or other disputes, your landlord insurance policy may provide important protections. Most landlord insurance policies include liability coverage, which can help cover legal defense costs, settlements, or judgments if you’re found responsible for a covered incident.

Key Coverages That May Apply

Below are some of the ways your landlord insurance may help after a covered incident involving a tenant:

• Liability Coverage: This is the primary protection if a tenant claims you’re responsible for bodily injury or property damage. For example, if a tenant slips and falls due to a maintenance issue, liability coverage may help with legal fees and damages.
• Legal Defense Costs: Many policies cover the cost of hiring an attorney and court fees, even if the lawsuit is groundless.
• Medical Payments: Some policies include limited coverage for medical expenses if a tenant or guest is injured on your property, regardless of fault.

It’s important to review your policy to understand what is and isn’t covered. Certain claims, such as those related to discrimination, intentional acts, or contract disputes, are often excluded from landlord insurance.

Steps to Take If You’re Sued by a Tenant

If you get sued by a tenant, consider the following steps:

1. Notify Your Insurance Carrier: Contact your insurance provider as soon as you receive notice of a lawsuit. Prompt reporting is essential.
2. Gather Documentation: Collect lease agreements, maintenance records, and any communication with the tenant.
3. Follow Legal Advice: Work closely with your insurer’s legal team and follow their guidance throughout the process.
4. Avoid Direct Negotiations: Let your insurance and legal representatives handle communications with the tenant’s attorney.

Why Work With Our Team?

At TS Insurance, we understand the unique risks Texas landlords face. Our team can help you review your current coverage, identify potential gaps, and ensure you have the right protection in place for your rental properties.

If you have questions about landlord insurance or want to review your policy, contact us today. We’re here to help you safeguard your investment and navigate any challenges that come your way.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.