Pub. 3 2018 Issue 5

14 www.ctaahq.org Tenant Injuries: Landlord Liability and Insurance FAQ H ow can landlords minimize finan - cial losses related to repairs and maintenance? You can avoid many problems by maintaining the property in excellent condition. Here's how: • Use a written checklist to inspect the premises and fix any problems before new tenants move in. • Encourage tenants to immediately re- port safety or security problems such as plumbing, heating, broken doors or steps -- whether in the tenant's unit or in common areas such as hallways and parking garages. • Keep a written log of all tenant complaints and repair requests with details as to how and when prob- lems were fixed. • Handle urgent repairs as soon as possible -- take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made. • Twice a year, give tenants a check- list on which to report potential safety hazards or maintenance problems that might have been overlooked. Use the same checklist to personally inspect all rental units once a year. Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement. How can insurance help protect a rental property business? A well-designed property insurance policy can protect a landlord's rental property from losses caused by many perils, including fire, storms, burglary, and vandalism. (Earthquake and flood insurance are typically insured under separate policies.) A Comprehensive General Liability ("CGL") policy provides liability insur- ance, covering injuries or losses suffered by others as the result of defective conditions on the property. Equally important, liability insurance covers the cost (mostly lawyers' bills) of defending personal injury lawsuits. Here are some tips on choos- ing insurance: • Purchase enough coverage to pro- tect the value of the property and assets. • Be sure the policy covers not only physical injury but also libel, slan- der, discrimination, unlawful and retaliatory eviction, and invasion of privacy suffered by tenants and guests. • Carry liability insurance on all vehicles used for business purposes, including the manager's car or truck if it's used on the job.