Whether you’re a commercial property manager who manages office buildings, strip malls or main street properties or a habitational property manager who is responsible for apartments and condos, you have one common need: To procure the appropriate insurance for the properties you manage. Because different types of properties have different types of exposures, ensuring adequate limits and proper coverage can be challenging. And keeping track of multiple projects and policy expiration dates can be extremely overwhelming. That’s why it’s important to have a specialist on your side.
Who should have property management insurance coverage?
If you are involved in any of the following activities, you should speak to an expert at Tannas Insurance who understands the unique insurance needs of property managers:
Renting or leasing real estate to others
Managing real estate for others
Selling, buying or renting real estate for others
What protections do property managers need?
While the insurance needs of property management companies are in many ways similar to other businesses – property, liability, work comp, group health – there are many distinctive insurance considerations as well, including:
Tenant discrimination insurance: Tenant discrimination is a major issue for property managers and an exposure not covered by general liability policies. By adding tenant discrimination insurance coverage, property managers are covered when current, prospective or former tenants allege wrongful discrimination.
Habitational coverage: Many apartment or condo building claims are catastrophic in nature. If you’re not working with the appropriate sources, coverage for habitational properties can be expensive and hard to secure.
Errors and omissions coverage: If you manage 50 properties for others and you forget to secure insurance coverage on a building, and it has a loss – you may be accused of professional negligence. An errors and omissions policy protects property managers against liability claims stemming from a variety of client/tenant financial losses, including failure to perform.
Builders risk insurance: Builders risk exposure is another important consideration. Many property managers make the mistake of having the contractor purchase builders risk insurance on their behalf. At Tannas Insurance, we recommend that property managers buy coverage themselves, because the policy owner, or first name insured, has control over the direction on any claim settlement and receives the claim checks from the insurance adjuster.
Loss prevention: Insuring commercial properties requires loss prevention expertise appropriate for the business renting your property. For example, if you rent to a restaurant, fire protection in the ventilation system may be required. Your insurance partner should alert you to these issues and assist with proactive measures.
Contact us for more information.