Wrongful Eviction Insurance To Protect Against Tenant Lawsuits

By DANIEL BORNSTEIN, ESQ.

 

We have seen an uptick in lawsuits initiated by disgruntled tenants that have been evicted through due process. Given the proliferation of litigation that is lodged against landlords, we urge rental property owners to take a hard look at their insurance policies and if it’s not already included, seek a rider that covers wrongful eviction.

 

You are a responsible landlord that may say that “wrongful” implies that you did something wrong, so no need for added insurance. But regardless of the merits, you can incur tens of thousands of dollars in legal fees if a tenant decides to stir up a hornet’s nest, even if the tenant is the one in the wrong.

 

It’s a litigious society for everyone, but the consequences can be especially harrowing for landlords that can face any number of claims that arise under California law, not to mention additional claims in rent control jurisdictions that are all too willing to air out the grievances of tenants. If this doesn’t go in your favor, there are numerous perils in store for your rental business.

 

We all know the stereotypical figure of an insurance salesperson that warns families of the risks looming to write a big policy for every foreseeable disaster.

 

But if you are a landlord that needs to legally remove a tenant, the risk is very real – much greater than the barreling asteroid hitting your roof. If you own a rental property perhaps it’s time to sit down with that insurance salesperson.

 

As always, Bornstein Law is happy to engage if you have any questions. Contact us for experience-driven advice.
 
As the founding attorney of Bornstein Law, Broker of Record for Bay Property Group and expert witness, Daniel Bornstein is a foremost and well-respected expert in landlord-tenant disputes and other property management issues with over 23 years of experience in handling real estate and civil litigation related disputes in and throughout the Bay Area. More than a litigator, Daniel manages rental properties, assists in completing real estate transactions and is well known for his educational seminars. He is always eager to answer questions and engage with Bay Area landlords, property owners and real estate professionals. Email him today.