Property managers have a need for proper insurance coverage. Property managers are often caught in disputes between owners and tenants. Also, property managers who have an equity interest in property have increased risks that often lead to conflict of interest claims. There is increased litigation holding all professionals to a higher standard, including property managers.
If you own property that is leased to others, whether one small office or an entire manufacturing complex, Lessors Risk Insurance is a must-have. Lessors Risk Coverage is necessary to protect your investment from litigation as the result of an accident.
We thought it would be helpful to identify a few common claims made against property managers.
Common Property Managers Claims:
- A property manager of a commercial building failed to maintain and update the building as required under the agreement. As a result, the owner was forced to lower rents, and the building owner sued the property manager for loss of income.
- A property manager hired an office manager to help with accounting and other functions. The office manager was fired due to poor performance. The office manager sued for wrongful termination. The defense costs exceed $25,000.
Who Needs Property Management Insurance Coverage?
If you are involved in the following types of activities, you will need the right kind of insurance:
- Renting or leasing real estate to others.
- Managing real estate for others.
- Selling, buying, or renting real estate for others.
- Lawsuits in this area continue to climb. Don’t leave your business exposed by not having this type of protection in place.
Heaton Bennett Insurance is an Independent Insurance Agency, which means we represent many different companies so we can find the one that is right for you. We can shop your insurance for you instead of you having to call around.