What Are the Property Management Insurance Requirements?

You are well on your way to starting a property management agency. Maybe you've even got a few property owners already lined up as clients. Before you officially open up your doors for business, you will need to make sure that you have comprehensive property management insurance to protect your business. It's the best way to make sure your business can stay in business. What requirements should you look at for this insurance? Let's take a look at what most companies like yours are going to need.

1. You Will Want to Have a Comprehensive E&O Policy

E&O stands for “errors and omissions” and is becoming required for all property management companies to carry. This means that if a property manager makes an error or omits something, this insurance rider can help to make sure your business stays protected. Even if it is just the claim of a perceived error, comprehensive E&O will make sure that you don't go out of business defending yourself.

2. Make Sure That Your Policy Covers Legal Costs

Any property management company qualifies for a property management insurance program, but not all policies have been created equal. The ever-changing needs of a property manager mean that there is more scrutiny on individual practices and higher costs associated with the errors that will inevitable come. Even if a claim or lawsuit is baseless, you can go broke defending yourself. Having a policy that provides assistance with legal costs can help you maintain your business.

3. These Items Are Not Generally Covered by General Liability Coverage

General liability insurance for property management companies does not cover E&O issues, performance disputes, or issues of professional liability to a property. Think about it like this: doctors carry specific insurance to make sure they are protected against malpractice. That's what property management insurance does for the property manager.


4. Personal Injury Claims Could Devastate You if They Are Not Covered

Personal injury coverages are not usually covered in a standard insurance policy either. You will want to ask your agent about the options that are available to you in this area to make sure that any issue is properly covered. A failure to properly inspect a home could not only mean that you'd need comprehensive E&O, but personal injury as well if the injury resulted from professional negligence.

5. Make Sure the Contractors You Hire Are Also Covered by Your Insurance

Even though the contractors you hire work independently, they are still representing your business. That means there is a certain responsibility that your business must take on because you chose to hire the contractor. By having comprehensive property management insurance, you'll always stay protected. Deductibles for property management insurance can start at $0. Speak with your insurance agent today about the policies that will be needed for your business and you'll be ready to open your doors to new business without the worry of being driven out of business.

Posted on Dec 23, 2014


The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More

How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More

The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More

Landlord Obligations: The Responsibilities of a Landlord

Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More

The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More

The Best Landlord Forums

Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More

The Biggest Landlord Problems and How to Fix Them

Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More

Landlord Tenant Disputes

If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More

Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More

Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More