Real Estate Risk Defined
Property managers face unique risks that require the right kind of commercial insurance. Property managers’ insurance can help protect property managers and third-party interests in the event of a fire or other catastrophic loss. Property managers often get caught between the owners and the tenants. Increased litigation holds all professionals to a higher standard, including property managers. In addition, property managers with an equity interest in the property face increased risk, which often leads to conflict-of-interest claims.
- Business Interruption--Loss of rents or rental income from a fire or other event.
- Tenants--Tenants that are involved in hazardous operations can increase your risk. These can include illegal activities.
- Green Buildings --Green buildings that include solar panels or other green materials can sometimes hinder fire fighters and increase repair costs.
- Discrimination --Tenant and landlord issues can often turn into large discrimination claims.
- Builders Risk Insurance--Many property managers make the mistake of having the contractor purchase builders risk insurance on their behalf. We recommend the property manager secure the coverage in their name.
- Environmental--More and more people and tenants are aware of ventilation, and other environmental issues that could impact your risk.