Does Landlord Insurance Cover Tenant Damage?

If your tenants vandalize or damage your rental property in any way, your insurance policy will cover those situations. Requiring a security deposit and/or a cleaning deposit upfront can also help mitigate financial hardships arising from the tenant's actions, especially if the monetary extent of the damage is greater than the coverage limit. You might also want to include a clause in the rental agreement where the tenant will forfeit the return of his or her security deposit under certain conditions.

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