Property managers and Real Estate agents need to have insurance coverage for their business, clients, tenants, and even the properties they manage. The insurance needs of various property management companies might seem similar; however, there are ways in which the needs are unique. Hence, as a real estate agent or property manager, you should have a well-designed estate insurance policy to protect you from liability claims, effects of natural disasters, vandalism, and legal proceedings.
Hence, as a real estate agent or property manager, you should have a well-designed estate insurance policy to protect you from liability claims, effects of natural disasters, vandalism, and legal proceedings.
So, how do you know which is the right real estate insurance policy for your real estate business?
Property managers should have professional liability insurance to defend them from claims against privacy invasion, hiring the labor of unlicensed contractors, wrongful eviction, and other related issues. This type of insurance is called the Error and Omission (E&O) insurance. This insurance is a protection policy for the landlord and tenants of a property, against any form of mistake that is made by you, the property manager.
When going for the Errors and Omission Insurance, you should read and understand your real estate Insurance agency’s exclusions. These exclusions explain the instances and events that E&O insurance does not cover.
General Liability insurance is intended to cover the day-to-day operations of a real estate firm. However, in a broader sense, insurance is applicable to any company or industry.
This creepy policy is also to be considered; as it is not included in the E&O insurance nor the General Liability Insurance. This covers a property manager from unknown instances when tenants think they were discriminated from other tenants for some reasons that might have not been apparent to you as a property manager.
Make sure you know your place and extent of what you are to cover with your estate insurance policy. Property owners and tenants ought to have their insurance coverage for their own properties and activities. Hence, as a real estate manager, know the limit to what your policy covers. You own exclusion from issues like injuries on the facility, fire outbreak on the property, amenity damage such as lightbox, water facility damage. Property managers are merely hired by a rental property owner, they perform a variety of services on behalf of the owner; they shouldn't bear some risks while the property owner is still the authority of the property. A sure way to be insured is to have your homeowner(s) add you to their landlord insurance policy, as the manager.
Distinguished provides some tips on choosing the right insurance policy for your property management business:
1. Don’t shrug off the urge to purchase full coverage for the of your property and assets.
2. Purchase a policy for physical injuries, libel, discriminations, and other issues that tenants or homeowners might blame on you.
3. Always hold liability insurance coverage when you are on a business purpose.
4. Get landlord/homeowner insurance.
The list about watching out for the right policy for your insurance business goes on and on. However, with a good real estate insurance agency/agent/broker, you can get the right advice that you need to make your real estate business a very profitable one.