Watch out, Apartment Owners.
When considering insurance, there is more to consider than just building coverage.
Here are just a couple of occurrences where different coverage above the basics can come into play:
As an owner or manager, you may be responsible for evictions. If you follow, or if it is alleged that you follow improper processes, you may be sued. Professional liability insurance can protect you! Another example of professional liability; Potential or current tenants can claim that you discriminated against them based on race, gender, religion, etc.
If you manage 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.
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 risk management insurance team should alert you to these issues and assist with proactive measures.
Hopefully this give you something to think about.
The commodity business of apartment ownership can be a tough one. In all cases it is beneficial to keep you costs down so your cash flow is more positive. However, many of these policies are very inexpensive to carry. With that in mind, the potential benefits grossly outweigh the costs.