Multi-residential property owners have the daunting task of monitoring and meeting the needs of multiple tenants. This also comes with a host of specialist risk management concerns. Ownership of residential property such as apartments, condominiums, and student housing creates a number of unique risks. As such, some research may be necessary to obtain the appropriate insurance for the properties being managed. Because different types of properties have different types of exposures, ensuring proper limits and adequate coverage can be challenging.
In addition, there may also be a need to keep track of multiple projects and policy expiration dates, which can be extremely overwhelming. That’s why it’s important to have a specialist to help you find the right types and amounts of insurance.
The basic insurance needs for any residential property owner is general liability coverage, in case of injury or loss of the tenant caused by: fire, wind, storms, theft and malicious damage or vandalism by the tenants of the dwelling. Also, depending on the location, flood insurance is recommended. A well-designed residential and commercial property insurance policy can protect against 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 others
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 property over residential property, you also need a properly insured home and commercial 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 having environmental and/or pollution coverage, commercial auto coverage, or workers’ compensation coverage.
Whether you own residential property only, 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 a good management. These professionals can advise on what coverage options are available, standard limits, and a variety of unique ways this coverage can best protect properties based on their use and location.
The basic insurance needs for any residential property owner is general liability coverage, in case of injury or loss of the tenant caused by: fire, wind, storms, theft and malicious damage or vandalism by the tenants of the dwelling. Also, depending on the location, flood insurance is recommended. A well-designed residential and commercial property insurance policy can protect against any or all of these risks.