19 Jun Property Insurance and Five Things Landlords Should Consider
Landlords need to have property insurance not only to protect their property but themselves as well. There are many different factors and variables to consider when searching for the perfect insurance policy. Not all parts of the policy may apply to you, but it’s always better to be over-protected than under-protected.
Here are five things a landlord you should keep in mind consider when searching for property management insurance.
Have Both General Liability and E&O Insurance
The key to investment property risk management is having enough of both General Liability Insurance and Errors & Omissions insurance. General Liability insurance will cover all the day-to-day operations on your property, while E&O insurance protects you from other mistakes. These mistakes can include wrongful eviction claims, invasion of privacy and other similar mistakes that could happen.
Property Insurance that includes Personal Injury Coverage
Some insurance companies won’t clearly state whether personal injury coverage is included in your General Liability insurance policy. When you have an investment property, personal injury coverage is a necessity to protect yourself in the event of an accident due to negligence or other factors.
Don’t Forget About Contractors
Contractors work independently, but they also represent you, so you need to ensure they are covered by your policy. Accidents can happen when a contractor is working on your property, so it’s important to protect yourself from those claims as well. This is one of the things property management owners overlook when searching for property insurance.
Consider The Ever-Changing Climate
The climate of property management is constantly changing, so keeping up with new developments is critical. Stay in close contact with your insurance company to ensure you have enough coverage for all aspects of your property management. Annual or even quarterly reviews of your coverage should be conducted as a safeguard.
Your Policy Should Cover Legal Costs
Every landlord hopes they’ll never have to go through a legal battle, but in reality, it’s possible any given day. Make sure your property insurance policy covers legal costs you may incur while protecting yourself. Many claims or lawsuits filed against you won’t have any basis at all, but you’ll still have to pay out of pocket to defend yourself. Having legal costs covered in those situations can provide more peace of mind.
APIA is proud to serve our clients with more than 150 years of combined experience in the industry. Since we treat each client as a unique case, we will tailor your policy to fit your needs so you won’t have to overpay for coverage you don’t need. Be sure to contact us today for more information on property management insurance and to see how we can help protect your investment.