Property Management Insurance
Since 1956, RJ Ahmann Company has been a premier provider of insurance for property managers nationwide.
Considering property management insurance?
You may be a commercial property manager who manages office buildings, strip malls or main street properties. You may, on the other hand, be a habitational property manager who is responsible for apartments and condos. In either case, you will need the appropriate insurance for the properties you manage. Because different types of properties have different types of exposures, ensuring adequate limits and proper coverage can be challenging. And keeping track of multiple projects and policy expiration dates can be extremely overwhelming. That’s why it’s important to have a specialist on your side.
Who should have property management insurance coverage?
If you are involved in any of the following activities, you should speak to an expert who understands the unique insurance needs of property managers:
- Renting or leasing real estate to others
- Managing real estate for others
- Selling, buying or renting real estate for others
In 2002, the number of lawsuits filed against the real estate industry escalated. The biggest increase and largest claim type was property management.
- National Association of Realtors
What protections do property managers need?
While the insurance needs of property management companies are in many ways similar to other businesses – property, liability, work comp, group health – there are many distinctive insurance considerations as well, including:
- Tenant discrimination insurance: Tenant discrimination is a major issue for property managers and an exposure not covered by general liability policies. By adding tenant discrimination insurance coverage, property managers are covered when current, prospective or former tenants allege wrongful discrimination.
- Habitational coverage: Many apartment or condo building claims are catastrophic in nature. If you’re not working with the appropriate sources, coverage for habitational properties can be expensive and hard to secure. RJ Ahmann helps habitational property managers obtain this important coverage, making sure adequate limits are in place and coverage is written properly.
- Errors and omissions coverage: If you manage 50 properties for others and you forget to secure insurance coverage on a building, and it has a loss – you may be accused of professional negligence. An errors and omissions policy protects property managers against liability claims stemming from a variety of client/tenant financial losses, including failure to perform.
- Builders risk insurance: Builders risk exposure is another important consideration. Many property managers make the mistake of having the contractor purchase builders risk insurance on their behalf. At RJ Ahmann, we recommend that property managers buy coverage themselves, because the policy owner, or first name insured, has control over the direction on any claim settlement and receives the claim checks from the insurance adjuster.
- Loss prevention: Insuring commercial properties requires loss prevention expertise appropriate for the business renting your property. For example, if you rent to a restaurant, fire protection in the ventilation system may be required. Your insurance partner should alert you to these issues and assist with proactive measures.
How the right property management insurance broker makes your job easier:
Many times, property managers buy individual insurance policies for each property that they manage. With multiple policies in place, there are separate deductibles for each property, even if they are damaged in a single storm. And the administrative load can be overwhelming. At RJ Ahmann, we place all of your location exposures on one master policy whenever possible. With all of your exposures on one policy, we can negotiate with underwriters and obtain rate concessions to save you money. Using master programs also makes expiration dates easier to manage. And we focus on risk control, offering expert advice to help ensure you comply with carrier requirements.
A smart solution
If you need property management insurance, or if you just want to learn more, RJ Ahmann can help. Our experienced property management brokers will help you obtain comprehensive, cost-effective insurance coverage – tailored for your business’s unique needs. One client recently had several properties hit by a major hailstorm and the result was one common loss deductible instead of many – saving $60,000. We represent a variety of “A” rated carriers so you can rest assured that your livelihood is protected with stable, reliable coverage.
To ensure that you get the strongest property management insurance protection at the best rates, RJ Ahmann:
- Negotiates on your behalf to obtain a comprehensive, all-in-one program designed to cover all aspects of your property portfolio with the best coverage available in the market
- Develops commercial property insurance programs for property managers on behalf of the owners of the properties that they manage
- Implements a comprehensive service plan with checkpoints for every large account, and we provide formal reviews of covered properties. We regularly monitor property activity to control and prevent claims.
Ready to learn more? RJ Ahmann Company is ready to help with insurance solutions for property management businesses.