What Insurance Policies Should a Property Manager Carry?

Commercial general liability insurance is your primary shield. It covers claims for bodily injury or property damage that occur on the premises you manage, such as a slip-and-fall accident. This policy does not cover the building structure itself, but it protects your business from significant legal and medical costs. It is a foundational policy for any property management operation.

Property insurance, often called a building policy, covers the physical structures you manage against perils like fire or storm damage. You must ensure the policy is in the owner's name and provides protection for the asset. It is distinct from your liability coverage and is a standard requirement for responsible management.

Standard property insurance typically excludes flood damage. Since flood insurance is a separate federal policy through the NFIP or private insurers, you must advise property owners to purchase it. In a humid subtropical climate with hot rainy summers and an Atlantic hurricane season, this coverage is especially important. Managing a property without flood insurance exposes the owner to catastrophic loss.

When water damage occurs from a covered peril, restoration is needed. Local water damage pros can perform services like water damage inspection and flood damage cleanup. They document the loss thoroughly, which is vital for the insurance claim process. Policies vary, and your insurer decides what is covered. Fast drying prevents secondary mold damage, protecting the property's value.

Clear communication with property owners about their insurance responsibilities is key. They need a robust dwelling policy. You should also require tenants to carry renters insurance for their personal belongings and liability. This layered approach ensures gaps in coverage are minimized when an incident happens.

When a loss occurs, coordination is essential. You will need to file a claim under the appropriate policy, whether it's the owner's property insurance or your liability coverage. Documentation from services like personal property restoration or drywall water damage repair supports the claim. Always maintain open lines of communication with all parties, including the insurance adjuster, to facilitate a smooth resolution.

• Ensure owners have adequate dwelling property insurance.
• Ensure you are properly noted on the owner's policy as needed.
• Require tenants to hold renters insurance in the lease.
• Understand what each policy excludes, like flood or sewer backup.
• Document all damage and repairs meticulously for claims.
• Know the claims process for each type of incident.