Property Manager Insurance
Property Manager Insurance provided by Thomas Insurance Agency .
A rental disagreement or damaged tenant property could have serious financial consequences. Protect your business with property manager insurance.
Who needs Property Management Insurance coverage?
If you are involved in the following activities, it is important to have the right coverage and insurance policies:
- Renting or leasing residential real estate to others
- Managing rental properties for others
- 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 leave your business exposed to unnecessary risk. Your clients also trust you to carry the right type of insurance to protect their biggest asset. The right policy can serve as an incentive to chose you as their property manager and will provide a tool to demonstrate your professionalism and care when acquiring new business.
What Does Property Management Insurance Cover?
Common coverages included in Property Management Insurance is property coverage for the physical building and/or property, commercial general liability, and errors & omissions liability (also known as professional liability). In addition to ensuring that your building and/or property is protected from common perils such as fire, it is typical to also have coverage for rental income replacement, sewer backup coverage, tenant damage coverage, and on premises pollution coverage, just to name a few.
Property Management Insurance coverage also protects property managers against allegations of negligence, claims and damages through the errors & omissions /professional liability coverage. Allegations of negligence resulting in bodily injury and/or property damage is covered by the commercial general liability coverage.
The errors & omissions/professional liability portion of Property Management Insurance Coverage policies are usually issued on a “claims-made” basis. What this means is 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 on a per-claim basis. In contrast commercial general liability coverage is almost always written on a per occurrence basis.
Property Management Insurance Coverage Claims Examples
- Wrongful Eviction: As a property manager having the responsibility of evicting tenants when and/or where necessary, you have recently evicted a tenant. In evicting the tenant you did not follow the proper eviction process. The evicted tenant is now bringing forward a claim against you.
- Tenant Discrimination: A potential tenant is claiming that 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/or that of your clients with a property management insurance policy. Even if you operate in a completely professional manner, you can still be sued for wrongful eviction or tenant discrimination. Ensure your business and your clients are properly protected, talk to us today to know more about property management insurance.