Insurance for a Property Manager
California Property managers have a need for proper insurance coverage. Property managers often get caught between the owners and tenants. There is increased litigation holding all professionals to a higher standard, and that includes property managers. In addition, property managers who have an equity interest in the property have increased risks that often lead to conflict of interest claims. Property Management Insurance through Roussel Insurance addresses the many unique risks property managers face.
Many property managers don’t think they can be sued. Here are two examples of lawsuits:
- A property manager oversees a small strip mall. Over a period of years, this property manager does not manage the property as contracted. As a result, the owner is forced to lower the rent. The owner sues the property manager for loss of income.
- A maintenance worker is employed by the owner of a complex, but reports to the property manager. On his lunch hour, he uses one of the free computers in the office to visit sexually explicit Internet sites. The property manager discovers this and fires him. He sues the property manager for wrongful termination.
Claims can occur and even if you are right, you will still need to defend yourself. Here are some insurance products that property managers should consider:
Tenant Discrimination insurance – Property managers are covered when current, prospective or former tenants allege wrongful discrimination.
Errors and Omissions Coverage – Errors and omissions coverage protects property managers against liability claims from third party financial losses resulting from failure to perform duties as a professional.
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.
Property management firms have many exposures that can lead to lawsuits. Dealing with owners, residents, employees, vendors, and regulatory authorities of both residential and commercial properties can, and does, lead to lawsuits. Things can go wrong, and the property manager is always the one in the middle of the problem.
Roussel Insurance has specialized in meeting the unique insurance needs of property managers for many years. We have assembled a team experienced in the real estate business to better serve landlords, developers, and property management firms.