Pets in a Rental: What They Do to a Landlord Policy

Landlords give a range of reasons for a no-pet policy, and most of them are about wear, noise and neighbours. Those are property management questions, and they belong with you and your property manager rather than with us.

There is a separate reason that often goes unexamined, and it is one we can speak to: pets sit inside the liability side of a landlord insurance policy, and carriers have views about them. This article covers that part.

Does a pet affect whether the property can be insured at all?

It can, and this surprises owners who assume it is only a lease question.

Liability underwriting looks at what is on the premises. Some carriers decline to write, or decline to renew, where a dog of a particular breed lives at the property. Others will write it but exclude animal liability entirely, which leaves the exposure in place and simply removes the cover for it. Others accept it with no comment. There is no single industry position, and the answer differs between admitted carriers and the surplus lines market.

Two consequences follow for a landlord. Allowing a pet you have not disclosed can affect the policy you already hold. And a breed restriction on your own carrier does not stop the tenant keeping the animal in breach of the lease, which is a different problem with the same result.

Whose policy answers a dog bite?

This is where most of the confusion sits, and the honest answer is that it depends on how the claim is framed.

A tenant with renters insurance has liability cover of their own, and their policy is the first place a claim arising from their animal would usually be directed. That is one practical reason to require renters insurance in the lease and to ask for proof rather than a promise.

A landlord can still be brought into it. Claims against owners commonly allege that the landlord knew about a dangerous animal and permitted it to remain, which puts the allegation on the landlord’s own conduct rather than on the dog. Whether that succeeds is for the courts and the adjuster to decide. What matters here is that the landlord policy is the thing that would have to respond, which is why an animal liability exclusion is worth finding before you need it.

Dog-related injury claims are among the larger categories of homeowners liability payouts nationally, on Insurance Information Institute figures, which is why underwriters pay attention to a category most owners regard as minor.

What should a landlord actually check?

Four things, and none require a decision about whether to allow pets.

Does your policy exclude animal liability? If it does, allowing pets is a decision to carry that risk yourself.

Does your carrier restrict breeds? Ask before approving a tenant’s animal rather than after.

Does the lease require renters insurance, and have you seen the declarations page? Proof, not an assurance.

Is your liability limit set against what a serious injury claim looks like? A personal umbrella policy sits above the landlord policy and is usually inexpensive relative to the limit it adds, though it requires the underlying limits to meet the carrier’s threshold first.

One thing that is not a pet policy question

Assistance animals are treated differently from pets under fair housing law, and a no-pet policy does not automatically apply to them. That is a legal question rather than an insurance one, and it is worth getting proper advice on rather than guidance from an insurance article.

The insurance point is narrower and still worth knowing: an animal that is on the property lawfully is on the property, and the underwriting questions above apply to it in the same way.

Whether to allow pets is your call and turns on the property, the market and the tenant. What we can tell you is what your own policy says about animals, whether animal liability is excluded, and where your liability limit sits. That takes a look at the actual documents. See also what a landlord policy reaches and where it stops.

Call the agency at (818) 322-4744 or request a review.

Underwriting appetite for animals differs by carrier and changes over time. What applies to you is decided by your own policy and its endorsements.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.