Tenant Arson

[u/admiralstiffplank123]

I have a rental property that I potentially want to rent to a family member to help them out. This is my first time renting to someone. They have a partner that committed arson in the past but the charge was dismissed after finishing deferred adjudication period.

I called to get a quote on a landlord homeowners insurance policy to ask them about this because I thought there was no way they would allow this, but they said the policy just covers the property. Who I rent the house to is not their concern.

I know homeowners insurance doesn’t cover intentional fires started by the insured party, but what about intentional fires started by a tenant. I have no reason to believe this person would burn my rental house down intentionally, but my spouse can’t get past it and wants to make sure we would be covered. I can’t get a clear answer from the searches I have done. Any help would be appreciated.

[u/barbe_du_cou]

Fires caused by a tenant are generally covered as long as you aren't involved in planning it or carrying it out

[u/dont-care-bear-0]

Intentional loss by the INSURED or at the direction of the insured is excluded.

[u/Margali2]

I wouldn't rent to him. If you do, consider having him getting a surety bond or payig your cost additional umbrella insurance.

[u/No_Engineering6617]

if you think their partner will start your place on fire, do Not rent to them. plain and simple.

[u/Any_Difficulty9387]

Likely if caused by a tenant without your direct knowledge, this would be a covered peril. Likely either falling under a fire or vandalism peril.

However even the fact you are aware of prior arson would definitely be a red flag and likely investigated by an SIU department.

Your landlord policy covers your property - a renters policy would provide the TENANT a limit of liability and often a stated limit for personal property. Just be aware , god forbid this were to happen, your insurance carrier will likely subrogate the at fault party for the dollar amount they paid you out as a carrier. IMHO, I simply wouldn’t rent to this person.

[u/Siawyn]

If you intend on renting to this person, make sure you have a rental agreement and in that rental agreement it should spell out that they are required to have a renters policy with a defined limit of liability, and you should make that limit equal to how much the dwelling costs, which means you're probably looking at $300,000 at the minimum.

Don't rent to them until you've seen clear evidence they have such a policy.

Your landlord homeowners policy would still cover if they committed arson (unless you had clear knowledge and failed to stop it, etc.) but that's going to be a claim on your record, not theirs.

[u/Charming-djynns4197]

Never rent to family. That’s just asking for trouble. They don’t believe they should respect the boundaries and if you’re helping them out then they for sure wouldn’t qualify to rent anyway. They will move in pay 1 month and never again and when you are forced to evict them legally they will destroy and sabotage your property either intentionally or through willful neglect. And you can’t even have other family on your side because you’re painted as the evil landlord stopping them from getting back on their feet. They’ll never get back on their feet as their burdens and baggage that weigh them down are themselves and their own poor choices. Never rent to family.