If you are involved in the following activities, it is important to have the right coverage and insurance policies:

A) Renting or leasing residential real estate to others

B) Managing rental properties for others

C) Contracting services for rental properties owners (ex. hiring or supervising property maintenance for rental properties)

Lawsuits related to this industry are common, and failure to have the proper protection in place can expose your business to unnecessary risk. Your clients also trust you to carry the right insurance to protect their biggest asset. The right policy can serve as an incentive to choose you as their property manager and will provide a tool to demonstrate your professionalism and care when acquiring new business.

Common coverages included in Property Management Insurance are property coverage for the physical building and property, commercial general liability, and errors & omissions liability (also known as professional liability). In addition to ensuring that your building and property are protected from common perils such as fire, it is typical to have coverage for rental income replacement, sewer backup coverage, tenant damage coverage, and on-premises pollution coverage.

Property Management Insurance coverage also protects property managers against allegations of negligence, claims, and damages through errors & omissions /professional liability coverage. In addition, the commercial general liability coverage covers allegations of neglect resulting in bodily injury or property damage.

The errors & omissions/professional liability portion of Property Management Insurance Coverage policies are usually issued on a “claims-made” basis. This means that coverage is triggered when a claim is filed, and you report it to the insurance company. Policies typically have a one-year term, with an annual premium and deductibles per-claim basis. In contrast, commercial general liability coverage is almost always written on a per-occurrence basis.

Wrongful Eviction: As a property manager, having the responsibility of evicting tenants when or where necessary you have recently evicted a tenant. In evicting the tenant, you did not follow the proper eviction process. As a result, the evicted tenant is filing a claim against you.

Tenant Discrimination: A potential tenant claims you did not rent a property to them based on gender, race, or religion.

Resident Injury:  A tenant or visitor falls and injures themselves on your property.

Property managers shoulder great risks on behalf of their clients. Protect your business and your clients with a property management insurance policy. Even if you operate completely professionally, you can still be sued for wrongful eviction or tenant discrimination. So ensure your business and clients are adequately protected. Talk to us today to learn more about property management insurance.