Expert Strategies & Tips for Buying Property Management Insurance

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Property management insurance is a specialized form of coverage or insurance policy.

It’s a policy designed for companies and professionals who manage various buildings, both commercial and residential.

What Is Property Management Insurance?

Property management insurance is a specialized form of coverage for professional property managers and companies. 

It’s a form of general liability insurance that protects a business from claims of errors, omissions, or negligence. 

Property management e&o insurance applies to both residential and commercial properties.

Residential building tenants may file a legal claim due to bodily injury, property or contents damage, and related claims.

Insurance protects professionals in the industry by covering legal and medical costs.

Third-party damage, such as breaking personal property within someone’s unit, may also be covered.

Other areas covered include wrongful eviction, tenant discrimination, and other legal action.

There are multiple business insurance policies you should consider, including, the 'bundle' aka business owners policy (BoP), commercial property insurance, and commercial general liability insurance

Should a Property Manager Have Insurance?

Every property management company should have insurance to cover any legal claims made against managers or staff.

Property manager insurance coverage is essential due to various legal matters in residential and commercial buildings and their tenants. 

It’s a vital form of protection against unexpected claims and expenses.

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Do I Need Property Management Insurance?

Insurance for property management company is required for protection from lawsuits and related legal matters. 

Commercial property management liability insurance is recommended with 100% coverage. 

This insurance coverage applies to companies and professionals who employ staff, who have access to sensitive and financial information, and may encounter allegations of fraud or misuse of funds.

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What Insurance Does a Property Management Company Need?

The type of property management insurance required depends on the type of property and what’s included in the scope of the building, whether it’s residential or commercial, and risk factors.

Each policy is prepared individually to include various factors, such as the number of tenants, high-risk areas, maintenance, and related items.

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Other Insurances Property Management Companies May Consider

If you’re a professional property manager or own a property management business, you’ll want to consider additional types of insurance, which offer more protection.

These options include commercial liability, which protects you against claims of bodily injury or property damage; professional liability, which explicitly covers companies that provide a service; and cyber security insurance, which protects access to financial and sensitive information.

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Choose from a variety of business insurance options. Professional Liability, Cyber Insurance, Business Owners Policy, Workers' Compensation.  

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How Much Does Property Management Insurance Cost?

The cost of property management insurance is specific to many factors.

The most common criteria taken into consideration when developing a policy include the location of the building, the number of buildings included on the property, the size and specifications of the building, any upgrades or ongoing construction, and if the property is owned or rented.

There are multiple essential factors that impact the cost of property management liability insurance coverage. 

These items include the number of tenants, square footage leased, company’s history of claims, credit score, and the number of employees working on site.

Each building and property’s specific characteristics may be considered, including buildings registered as historical sites, areas of the building, or property used for particular purposes.

A licensed insurance professional specializing in real estate and property management insurance will provide all the details of what’s required to quote the cost accurately.

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