Ask any landlord what their greatest fear is from a tenant liability insurance perspective is and almost all will say “FIRE!”. While tenant caused fires is, and should be, a serious concern for landlords, water damage is actually much more common within rental properties.
This type of damage can occur in many ways such as a failing water heater, a burst pipe, a broken supply line under your sink, a clogged toilet / sink, or even a split hose connected to washing machines provided for tenant use.
Just as it’s essential to have a smoke detector in each of your property’s bedrooms and common areas, it is a smart move to install leak detectors in places where water damage could occur, such as laundry areas, water heater closets, bathrooms, under sinks, etc.
Water leak detection devices can monitor the flow of water throughout your building. If an unusual activity or flow of water is detected – most likely caused by a leak somewhere in your plumbing or pipes – the device will alert you first and then shut off your water supply to help minimize damage. Many insurance companies also offer a discount on insurance if you install leak detection systems. A one-time investment can end up paying for itself over time.
Not every form of water damage is covered under typical landlord- based insurance policies. It is important to review your policy with an insurance agent that fully understands rental property risks and exposures so that you are afforded the broadest coverage possible for water damage events.