Multiple homeowners have the daunting task of monitoring and meeting the needs of multiple tenants. This also comes with a host of specialized risk management concerns. Owning residential properties such as apartments, condos, and student housing creates a number of unique risks. As such, some research may be to acquire the appropriate insurance for the properties being managed. Because different types of properties have different types of exposures, ensuring the proper limits and adequate coverage can be challenging.
Additionally, it may also be necessary to keep track of multiple projects and policy due dates, which can be extremely overwhelming. That is why it is important to have a specialist to help you find the correct types and amounts of insurance.
The basic insurance needs for anyone who owns residential properties is general liability coverage, in case of injuries or losses caused by: fire, wind, storms, theft and malicious damage or vandalism by the tenants of the house. Also, depending on the location, flood insurance is recommended. A well-designed commercial and residential property insurance policy can protect you from any or all of these risks.
Who should have property management insurance coverage?
Anyone involved in any of the following activities should speak with an expert who understands the unique insurance needs of property managers:
Rent or lease real estate to third parties
Manage real estate for third parties
Sell, buy or rent real estate for third parties
Commercial properties carry some of the same risk factors as residential properties.
If you are a real estate investor, but choose to focus on commercial properties rather than residential properties, you also need a properly insured commercial and residential property insurance policy that is designed accordingly. Like residential property, general liability and catastrophic event coverage must be purchased. However, when it comes to commercial property, you should also consider environmental and / or pollution coverage, commercial auto coverage, or workers’ compensation coverage.
Whether you are the owner of a residential property, a commercial property, or a portion of each, working with a professional residential and commercial property insurance provider to create policies that cover all areas of risk is good management. These professionals can advise on available coverage options, standard limits, and a variety of unique ways that this coverage can better protect properties based on their use and location.
The basic insurance needs for anyone who owns residential properties is general liability coverage, in case of injuries or losses caused by: fire, wind, storms, theft and malicious damage or vandalism by the tenants of the house. Also, depending on the location, flood insurance is recommended. A well-designed commercial and residential property insurance policy can protect you from any or all of these risks.
