Risk Management Class: NARPM Convention: Property Managers Beware!

By
Real Estate Broker/Owner with Sue Carrell & Associates DRE#01386664 MLS#B319655
Property Managers have enormous exposure to liability suits. This was pointed out ever so clearly by Vicki Gaskill, former President of the National Association of Residential Property Managers (http//:www:NARPM.com). The stories managers tell make your hair stand on end. So, for every challenge there is a solution. Call your Insurance Broker and ask questions about your coverage. Do you have enough, what is left out? We are advised to have a minimum of 2 mil in liability, and ask owners of the property you manage to put you on as "Additional Insured". It doesn't cost them anything. But some carriers just won't do it. Advice to us? Ask them to use a carrier who will, or don't take the account.

Comments (4)

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Good morning Sue.  Education is a GREAT way to CYA.....www.narpm.org and there is a NARPM group here on ActiveRain http://activerain.com/groups/NARPM

Mar 25, 2011 10:50 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Good morning Sue.  Education is a GREAT way to CYA.....www.narpm.org and there is a NARPM group here on ActiveRain http://activerain.com/groups/NARPM

Mar 25, 2011 10:50 PM
Anonymous
Sue Carrell

Thank you for your response, Wallace. I didn't realize that NARPM had a presence on AR. It would be great if they used this platform instead of the Yahoo Listserve...don't you think? How's the weather effecting your daily work where you are? We are getting flooded everywhere...

Mar 26, 2011 12:59 AM
#3
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Take these additional steps to help you mitigate risk:

 

  • Stay up-to-date on the types of disclosures required by law.
  • Ensure that sellers understand the legal consequences of withholding material information about their property from prospective buyers.  Refer clients to their legal counsel for specific information about matters to disclose or not disclose that you are not sure of.
  • Once you, or another certified professional, has viewed or examined a property, never make statements about the property that you believe to be false.
  • Never express opinions about a property’s future, such as, “I’m sure the value of this home will go through the roof,” or, “You’ll never have zoning difficulties at this location."   Such statements leave you vulnerable to charges of misrepresentation, negligence, or both.
  • Always keep records about the information you provide to clients and others, whether the information was given verbally or in writing.
  • Personally view and inspect the properties you list and inform sellers and potential buyers about any evidence of material facts in a timely manner. You cannot delegate that responsibility to another.
  • Recommend to buyer clients that they should have an expert inspect property conditions and not just accept the seller’s disclosure statement.
  • If you are doubtful of the answer to a client question, research the answer before providing a response. You can also ask the advice of your designated broker.

 

Sep 14, 2015 06:58 PM