I'd like to make a few suggestions regarding Insurance for a Property owner.
If you own an Apt. Building, Commercial Property, rent out a home, have a Vacation rental or rent space in a building to a business or even own a plot of Land, there are a couple of things that can protect you and your renters.
1. Own a Building:
Any services (ie) street sweeper, Valet, including Maintenance, Housekeeping, repair-work or Property Management-Have the Business provide you with Proof of Insurance, naming you as additionally named Insured, Liability coverage of a min. of 1 million dollars, proof of Workers Comp and Proper Licensing. This includes any Tenants you may have on the Property.
If anyone gets hurt or damaged during the course of another business, the Owner of the Property can be held liable and brought into a law-suit. Additionally named insured, protects the owner from Liability claims of another Business. Keep a copy of this Policy in your file. Make it a part of your Lease. Keeping claims off of your own policy does help your Premiums. Having someone work on your property without Workers Comp is not covered on your policy and you could be held Liable.*
2. Have a Property Management Company rent out your Vacation rental?
Have them provide Proof Of Insurance with a Min. of 1 mil. Liability coverage, naming you as additionally Named insured and before renting the property, have the prospective Renters provide Proof Of Liability Insurance from their Homeowners or Renters Policy.
Damage caused by a renter beyond a deposit might be covered under their Liability coverage. Having the policy in hand before needing it will save a lot of time and money.
3. Land Owner?
Owning Land does not exclude you from Liability. Even damage or injury caused by Trespassers does not exempt you. Check with your Insurance Company. You might be able to extend Liability from your Homeowner policy.
4. Own an Apt. Building or rent a Home or Condo?
More and more owners are requiring renters provide their own Renters Policy.
In the event of a loss beyond your control, many renters think the owner is responsible for their personal property. If there is a loss, the renters policy will provide Liability coverage if damage is caused by the renter and if the renter has to evacuate because of a covered peril or threat of Fire, their policy will help them get lodging and meals (not all policy's and subject to policy limits)
I have a friend who rented a beautiful Beach Home to a couple. The toaster oven caused a major kitchen fire. Their Renters policy Liability limits covered lost rents and repaired the Home without any consequence to their own Landlord Policy. The Renters were responsible people, moved back in after repairs and continue to live in the home.
I hope this BLOG helps and offers information for you to be able to help your clients when making decisions on buying property. If you have any questions, or want to add more information, please do.
Please remember, I am an Insurance Agent and do not make any claims to provide Legal Advice. Always check with your Attorney before signing any agreements or contracts.
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