Even if you do everything right, lawsuits can happen. Find out how proper insurance keeps you protected.
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What would happen if someone slipped and fell at your rental property? Would you be covered, or could you end up paying out of pocket? Many property owners assume they’re safe as long as they have done nothing wrong. But today, even if you’re not at fault, you can still be sued. That’s the problem.
When I started in this business 12 years ago, property management already had a reputation for being very litigious. But honestly, it was nowhere near what it is today. Back then, it was actually rare to deal with issues like slip-and-fall lawsuits or disputes over security deposits.
Over the last couple of years, though, I’ve seen a big shift.
Trial attorneys have gained greater influence in the Nevada legislature, and laws have been shaped to make it much easier for people to file lawsuits.
What that means for you as a property owner is simple: the risk of getting sued is higher today than it used to be.
When are you actually liable? Here’s a situation to think about.
Let’s say there’s a leak in your property. Water builds up on the floor, and someone slips and falls. So, are you responsible?
• Did you know about the problem? If you had prior knowledge of the leak and didn’t fix it, then yes, you can be held liable.
• But if you didn’t know about it, the law says you’re not responsible.
That sounds reassuring.
The catch: even if you’re not liable, you can still be taken to court. And once that happens, you still have to defend yourself. That means legal fees, time, and stress, whether you win or not.
This is exactly why insurance is so important.
How much insurance do I recommend? I always encourage all of my owners to carry at least $500,000 in liability coverage on their property.
That coverage helps protect you if you have to defend yourself or if a claim is made against you. Without it, those costs could come straight out of your pocket.
"Insurance is your rental’s best defense."
Protecting yourself and your property manager with insurance. In my property management agreements, I require my owners to add me as an additional insured on their insurance policy. Here’s why.
Most of the time, when someone files a lawsuit, they don’t just go after the owner. They go after the property manager, too.
Being listed as an additional insured can help your policy cover both of us. It keeps things more streamlined and avoids issues that can come up when multiple insurance companies and attorneys are involved.
Not all insurance companies handle this the same way. For example, Allstate doesn’t add me as an additional insured. They list me as an interested party instead. That might sound similar, but it’s not. Being listed as an interested party doesn’t give the same level of protection as being an additional insured, and that can make a big impact if a lawsuit comes up.
Insurance costs go up with coverage. Those costs affect property owners and property managers and are often passed down to tenants as well.
It’s a bit of a double-edged sword. You need protection, but it comes at a price.
Even if you do everything right as a property owner, you can still be sued. The main point is this. It’s not just about being at fault; it’s about being ready and protected.
If you’re not sure about your insurance or have questions, reach out at 725-220-4747, email info@griplv.com, or visit www.griplv.com/blog. I’ll help you map out a solid, bullet-proof strategy and recommend good insurance agents in town who can help make sure you are protected before anything happens.