What you need to know about landlord insurance and state laws.
While it is true that real estate investing over the long-term has proven to be one of the most successful investments, there are some areas of knowledge that you should be familiar with, including state laws and insurance options. Because state laws may change regarding tenants’ rights. What is currently allowed now may be disallowed at some point in the future. To learn more about laws that pertain to landlords and tenants’ rights in your state, search for your state’s legislature on any recent changes to the laws in regards to landlords and tenants’ rights.
Landlord insurance specific to Washington state.
While we do offer landlord insurance nationwide, we do have a focus in Washington. It’s important for real estate investors and landlords to ensure they are not breaking Washington state laws, because their insurance may not cover violations of state law. In addition, you need to keep in mind that if you are found to be in violation of state laws your tenants will have grounds for litigation (which may also not be covered by your insurance) and the state may be able to legally fine you or your company (which may not be covered by your insurance) for violations of various tenants’ laws written into the state constitution. For Washington state laws involving tenants and landlords, click here. Simply type in Landlord and you will find many different references to state law.
Washington state laws that all local landlords need to know.
We will list some of the current state laws for Washington State. Some have been shortened. A complete listing can be found by clicking this link: RCW 59.18.060. Keep in mind that your insurance may not cover you if you violate any of the below guidelines and are sued by tenants or government authorities.
Landlord — Duties.
The landlord will at all times during the tenancy keep the premises fit for human habitation, and shall in particular:
(1) Maintain the premises to substantially comply with any applicable code, statute, ordinance, or regulation governing their maintenance or operation, which the legislative body enacting the applicable code, statute, ordinance or regulation could enforce as to the premises rented if such condition endangers or impairs the health or safety of the tenant;
(2) Maintain the structural components including, but not limited to, the roofs, floors, walls, chimneys, fireplaces, foundations, and all other structural components, in reasonably good repair so as to be usable;
(3) Keep any shared or common areas reasonably clean, sanitary, and safe from defects increasing the hazards of fire or accident;
(4) Provide a reasonable program for the control of infestation by insects, rodents, and other pests at the initiation of the tenancy and, except in the case of a single-family residence, control infestation during tenancy except where such infestation is caused by the tenant;
(5) Except where the condition is attributable to normal wear and tear, make repairs and arrangements necessary to put and keep the premises in as good condition as it by law or rental agreement should have been, at the commencement of the tenancy;
(6) Provide reasonably adequate locks and furnish keys to the tenant;
(7) Maintain and safeguard with reasonable care any master key or duplicate keys to the dwelling unit;
(8) Maintain all electrical, plumbing, heating, and other facilities and appliances supplied by him or her in reasonably good working order;
(9) Maintain the dwelling unit in reasonably weathertight condition;
(10) Except in the case of a single-family residence, provide and maintain appropriate receptacles in common areas for the removal of ashes, rubbish, and garbage, incidental to the occupancy and arrange for the reasonable and regular removal of such waste;
(11) Provide facilities adequate to supply heat and water and hot water as reasonably required by the tenant;
(12)(a) Provide a written notice to all tenants disclosing fire safety and protection information. The landlord or his or her authorized agent must provide a written notice to the tenant that the dwelling unit is equipped with a smoke detection device as required in RCW 43.44.110.
(13) Provide tenants with information provided or approved by the department of health about the health hazards associated with exposure to indoor mold. Information may be provided in written format individually to each tenant, or may be posted in a visible, public location at the dwelling unit property.
The above summation of state laws landlords must follow is only a brief glance of state requirements. It is a good idea to be aware of all state law requirements. Otherwise, you could be facing financial trouble if you intentionally or accidentally violate state law.
The most common law to impact landlords.
The state law that mandates landlords to “[m]aintain the premises to substantially comply with any applicable code, statute, [or] ordinance” is one where landlords can get themselves into significant financial difficulties” tends to be the most common issue.
An example of how state law and landlord insurance go hand-in-hand.
In the event of a covered claim, let’s say a fire occurs with significant structural loss to the building itself. The landlord will be required to bring the building up to modern code. If it’s a relatively new building it is likely already up to code. What if the building is 60 years old, however? The landlord will be required to make sure all repairs and reconstruction uses up-to-date building codes. That doesn’t seem like a big deal until you come to realize that a particular coverage called ordinance and law coverage is not included unless you add it as an endorsem*nt to your policy. That means extra costs you incur as the real estate investor will be borne entirely by yourself unless you purchased the ordinance and law coverage option.
