September 10, 2019
Why You Need Residential Property Management Insurance
If you own properties or are just starting your property management business, there’s a lot to think about. In addition to keeping your rental properties rented and the tenants happy, you’re signing leases and enforcing these contracts. You’re also in charge of collecting rent and ensuring tenant safety. With the risk of claims and lawsuits ever-present, there’s no doubt that you need property management insurance.
In general, owners and property managers need to carry property management insurance as well as several forms of business insurance. Talk to your insurance agent or lawyer, but typically, this is what property professionals need to keep them safe from risk.
General Liability Insurance
While general liability insurance can vary from provider to provider, it’s intended to protect you against several types of claims. General liability insurance offers coverage for your business in the event that a person is hurt or if your property is damaged. You’ll need this type of insurance to cover the cost of repairs and replacements, medical expenses, legal bills and any compensation.
Commercial Property Insurance
A commercial property insurance policy is designed to cover against damage to your buildings and contents due to a covered cause of loss, such as a fire. The policy may also cover loss of income or increase in expenses that results from the property damage. It essential secures your bricks and mortar properties, inventory and equipment against damage that may result from events such as a fire, flood, earthquake, tornado or windstorm. Business interruption insurance is typically included in a commercial property policy. This insurance protects your earnings if you are unable to collect rental due to damage from a storm or fire, etc.. It allows you to earn income while repairs are being made to the property. If it is not included, you may have to purchase it separately.
Errors and Omissions Insurance
Errors and omissions insurance is liability insurance that protects businesses by safeguarding against losses if there is ever a lawsuit from an owner or a tenant due to a negligent act, error or omission as a result of a service provided to a customer for a fee. This type of insurance kicks in to cover legal costs, which would not be covered under your general or commercial property insurance.
Tenant Discrimination Insurance
Tenant discrimination insurance is a specialty product that protects property managers when current, prospective or former renters accuse them of discrimination or wrongful eviction due to discrimination. Discrimination could be based on race, color, religion, age, sex, pregnancy, national origin, sexual orientation, family status or disability.
Cyber Liability Insurance
Cyber liability insurance covers you in the case of electronic security breaches involving the personal/commercial information. Property management firms store a fair bit of information on both tenants and owners, opening them up to cyber threats such as hacking, malware and data ransom. If you think it will never happen to you, think again. The vast majority of data breaches are at small businesses, forcing many of them to shut down.
How Property Vista Helps
While you ensure that your business is covered, don’t forget about ensuring your tenants also have coverage. If one of your residents starts a fire in their unit, and it destroys their apartment and their belongings, they’re responsible for the cost of repairs. However, often tenants don’t have coverage or mistakenly think that the your insurance covers their belongings.
That’s why Property Vista has teamed up with TenantSure to provide a built-in renters insurance program that is easy to join and provides broad coverage at a great price. Tenants can register their insurance by signing into the resident portal. Whether they adopt our TenantSure program or fill in the details of their coverage from another company, they’ll be able to register and monitor their status. Sound interesting? Check out our pricing and get a demo here.