Does Landlord Insurance Cover Landscaping?
Typically, when insuring a rental property, you focus on the building itself. However, what if you have invested in landscaping? That can be expensive to replace, but does landlord insurance cover it?
Let's find out!
Does Landlord Insurance Cover Trees, Shrubs, and Plants?
Yes. Landlord insurance covers trees, shrubs, and plants, but with limited coverage amounts (see below). However, you can add additional coverage for complete landscaping coverage.
You will want to talk with your insurance agent about an endorsement and how much it will add to your monthly premiums.
When Do Landlord Insurers Cover Trees, Shrubs, and Plants?
Usually, standard DP3 landlord insurance covers all perils, except those expressly excluded in the policy. However, for landscaping and vegetation, the carrier will only cover a handful of hazards, such as:
- Fire or lightning
- Explosions (e.g., caused by a burst transformer or gas main)
- Riot or Civil Commotion
- Aircraft Damage
- Damage From Vehicles (if you or the tenant do not own the car)
- Vandalism or Malicious Mischief (includes damage during burglaries or attempted burglaries, but does not include vegetation theft)
Insurers will cover trees falling because of a fire or the other perils listed above. But, if a tree fell because you backed into it with your car or a flood, you cannot file a claim.
Does Landlord Insurance Cover Potted Plants?
Landlord landscaping coverage includes outdoor permanently planted trees, plants, and shrubs. If you plant them in outdoor movable pots, they are protected under personal property coverage. However, if the pot is a permanent structure, your landlord landscaping insurance would cover the plants potted within it.
Potted plants, in movable pots, receive personal property coverage, even if they are outdoors. Personal property covers them with actual cash value (ACV) coverage, meaning the adjuster will subtract depreciation. Your policy deductible also applies to claims. The most you can receive from each incident is your personal property coverage limit.
So, if a fire burns your rental house and landscaping, your personal property coverage limit must pay for the things you owned inside and outside the rental. That might include appliances or appliances and furniture if the rental was furnished, plus your potted plants. Therefore, be sure you buy enough personal property coverage to cover your things along with your potted plants.
Indoor plants also fall under "personal property" since they are not in the ground. Make sure that you clarify that distinction when buying coverage.
How Does Landlord Insurance Cover Damage Caused by Outdoor Trees, Shrubs, and Plants?
Finally, you also must pay attention to the damage that your plants can cause. For example, what if your tree fell through your roof?
You need landlord rental dwelling insurance, landscaping coverage, and debris removable coverage to cover the incident. All three come with a standard landlord insurance policy.
- Rental Dwelling Coverage. Your rental dwelling coverage pays for damages to your rental home. Your rental dwelling coverage pays replacement cost value (RCV) for damages to your rental, meaning it does not subtract depreciation. You get the full cost to repair damages, minus your policy deductible. You will have a coverage limit, though, so your repair claim payment will not exceed your rental dwelling coverage limit.
- Landlord Landscape Coverage. Your landscaping coverage pays to replace the tree.
- Debris Removal Coverage. Your debris removal pays to remove the fallen tree. Coverage amounts vary with each landlord insurance company.
Coverage A (rental dwelling) might cover debris removal. Or you may have separate debris removal coverage worth 5%, 10%, or 15% of Coverage A. Or you could have a fixed dollar amount for debris removal, e.g., $500 to remove a fallen tree that damages your rental home.
Note though, that if a tree falls without damaging your rental home or another building on your rental property, debris removal will not pay to remove the tree.
When Will Landlord Insurance Deny a Claim for Trees, Shrubs, and Plants?
As you may have recognized, there are a lot of significant perils not listed for rental house landscaping coverage. Some examples can include:
- Flooding. Landlord insurance excludes flood coverage. You can buy flood insurance from the NFIP or a private carrier, but it only protects personal belongings and property damage.
If you buy flood insurance from the National Flood Insurance Program, you cannot file a claim for trees and shrubs. If you buy a policy from an independent carrier, though, they might cover vegetation.
- Earthquakes. Landlord insurance excludes some natural disasters, including earth movement, from coverage. You can buy landlord earthquake insurance from the CEA or other FAIR plans, but they exclude landscaping.
- Weight of Ice and Snow. Winter weather can kill trees and shrubs easily, which is why landlord insurance does not include it.
- Burglary. While plant or tree theft is uncommon, it can happen. Unfortunately, you cannot claim theft on your landlord policy's landscaping insurance.
- Disease. Plants can catch a wide array of diseases, causing rot and death. Disease and dry rot are not covered by your landlord insurance landscaping coverage.
- Termites and Other Insects, Birds, and Vermin. Your landlord landscaping coverage does not pay for insect and bird damage as that is a maintenance issue.
- Commercial Plants. If you have any plants or trees grown for commercial purposes, you must buy business insurance. Landlord landscaping insurance does not cover plants, shrubs, or trees grown for commercial purposes.
Any damage from a peril not listed on the policy will not count for an insurance claim. You can also talk with your landlord insurance agent about other specific circumstances.
Does Landlord Insurance Cover Your Tenant's Plants?
No, landlord insurance does not cover any property belonging to your tenants. Only a renters insurance policy would cover damage to a tenant's plants outdoors or inside.
How Much Does a Landlord Policy Pay for Trees, Plants, and Shrubs?
Typically, the most you can receive for trees, shrubs, and plants is up to 5% of the total policy.
So, if you have $500,000 for the main rental structure, you can claim up to $25,000.
That said, there is often a limit per tree and shrub. For example, most landlord insurers cap the cost to replace a fallen tree or destroyed shrub to $500 per plant. So, even if you have $25,000 of insurance, you might not get to claim all plants. For example, if you only have three or four trees that count for damage or loss, your maximum claim could be $2,000.
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If you have a DP3 policy, your existing landlord insurance policy covers trees, shrubs, and plants. Does your landlord insurance cover your rental property landscaping?
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Hope that helps!
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