|Insurances For Property Managers
When you’re establishing your profession as a property manager, you’ll have to make sure that you get the right insurance to protect your business, your properties and yourself from damages. You’ll need to get property management insurance for the different properties you manage, including renting or leasing real estate to others, managing properties for others or and/or contracting services for property owners.
Management insurance coverage will protect you from lawsuits and even though you think you won’t get sued, you never know! It’s better to be safe than sorry since lawsuits in real estate and property management are actually quite common. If you are uninsured, you change having your business exposed to risk. And the right insurance will help others trust you as a property manager since it shows that you care about your profession.
You’ll want to have the right insurance that not only covers your property management business, but also your clients and their tenants. An insurance policy will protect you from things like legal proceedings, liability claims and losses caused by vandalism, fire, burglary or perils.
You’ll want to make sure you get Errors and Omissions Insurance, which is a specialized insurance for property managers, which is designed to protect your form claims against wrongful eviction, invasion of privacy, hiring contractors who are unlicensed and other things related to real estate and it protects the tenant and landlord from financial loss if the property manager makes a mistake that leads to financial loss.
General Liability Insurance will also be needed and is used for your business’ day-to-day practices. It’s used in any business regardless of the industry. Then there’s Tenant Discrimination Insurance that will cover property managers when former, prospective or current tenants allege wrongful discrimination.
But being insured yourself is not enough. You’ll want to make sure that your owners and tenants are also insured. Tenants should have renter’s insurance, while the owner of the property should have their own landlord insurance policy. This covers both parties in the case of an emergency.