Habitational Insurance for Commercial Vs Residential Property

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The owners of several residences have the heavy task of monitoring and meeting the needs of a number of tenants. This also comes with a slew of specialist risk management issues. Ownership of residential properties such as apartments, condominiums and student accommodation creates a series of unique risks. As such, some research may be required to obtain the proper insurance for managed properties. Since different types of properties have different types of exposure, it can be difficult to ensure adequate limits and proper coverage.

In addition, there may also be a need to track multiple projects and policy expiration dates which can be extremely overwhelming. This is why it is important to have a specialist to help you find the right types and amounts of insurance.

The basic insurance needs for anyone with residential properties are general liability coverage, for injuries or loss of tenants caused by: fire, wind, storms, theft and malicious damage or vandalism by tenants of the accommodation. Additionally, depending on the location, flood insurance is recommended. A well-designed home and business property insurance policy can protect against some or all of these risks.

Who should be covered by property management insurance?

Anyone involved in any of the following activities should speak with an expert who understands the unique insurance needs of property managers:

Rent or lease real estate to third parties

Managing real estate for others

Sell, buy or rent real estate for others

Commercial properties carry some of the same risk factors as residential properties

If you are a real estate investor but choose to focus on commercial properties rather than residential properties, you also need a well-secured home and business insurance policy designed accordingly. Just like residential property, general liability and catastrophic event insurance must be purchased. However, when it comes to commercial ownership, you should also consider environmental and / or pollution coverage, commercial automobile coverage or workers compensation blanket.

Whether the owner of a residential-only, commercial-only property, or part of each, working with a professional Home and commercial property insurance supplier to create policies that will cover all areas of risk is sound management. These professionals can advise you on available coverage options, standard limits, and a variety of unique ways in which this coverage can better protect properties depending on its use and location.

The basic insurance needs for anyone with residential properties are general liability coverage, for injuries or loss of tenants caused by: fire, wind, storms, theft and malicious damage or vandalism by tenants of the accommodation. Additionally, depending on the location, flood insurance is recommended. A well-designed home and business property insurance policy can protect against some or all of these risks.


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