Risk & Insurance for Rentals

Owners carry PROPERTY insurance (fire/hazard on the building), LIABILITY coverage (slip-and-fall), LOSS-OF-RENTS coverage (income while repairing a casualty), and often umbrella policies above the primary limits. Tenants need RENTERS insurance for their contents and personal liability — the landlord's policy never covers a tenant's couch, a fact managers should put in the lease. Commercial leases allocate risk with indemnification (hold-harmless) clauses and require certificates of insurance from tenants and vendors. Risk management beyond insurance: avoid (close the pool), control (fence and self-latching gate), transfer (insurance/indemnity), or retain (deductibles) — the classic four responses.