Why Landlords Need Liability Insurance

by Janet Portman

Inman News

Q: I manage a single-family home for an out-of-state owner. A branch from a tree on the front lawn fell on the tenant’s car, which was properly parked in the driveway. The owner’s insurance carrier refused to pay for the damage to the tenant’s car, claiming no damage was done to the actual home. So, the tenant had the work done on her own, and filed a claim with her car insurance company, who paid the bill ($3,000) except for the $1,000 deductible. She wants the owner to cover the deductible, and I agree. What do you think? –Will G.

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Posted by Kim Ezzell on 04.25.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

WHAT LANDLORDS NEED TO KNOW ABOUT RENTER’S INSURANCE

WHAT EVERY LANDLORD NEEDS TO KNOW ABOUT RENTER’S INSURANCE

By David Rush, Kistler Financial Group Inc.

Renter’s insurance is a “must-have requirement” for every tenant, especially in today’s litigious world. 

WITH A RENTER’S INSURANCE PROGRAM, YOU CAN …

1. Significantly reduce your liability risk.  When someone is injured on your property, both the renter and the landlord may be liable.  If your renter’s liability is covered by insurance, your liability as landlord could be significantly reduced.
2. Help your renters’ protect the value of their personal property, which in turn can reduce or eliminate any claim against the landlord for property damage. This is the renter’s best bet for recovery after a catastrophe, like the California fires. 
3. Help your renters find great coverage, with quick, easy enrollment and low rates. Renter’s insurance is available for less than $.50 per day (based on the national average).  Often coverage can begin by 12:01 AM the day after they call and make payment. 

AAOA members can participate in Kistler’s Renter’s Insurance Program and enjoy special pricing.  Call 1-866-483-5168 or visit our Insurance page for more information.

Not a member?  Join AAOA.  Upgrade to our PremiumPlus Membership and receive our CD series Real Estate Investment Secrets, featuring top national consultants- $1,000’s of dollars of consultants’ time for free!

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Posted by Kim Ezzell on 10.29.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

California Fires Place Focus on Property Insurance

California Fires Place Focus on Property Insurance

Under a State of Emergency, Southern California residents wait in a shroud of smoke, and anguish over the unknown - how much damage will this latest series of wildfires inflict on property owners?

According to the Insurance Journal, the insurance industry is rallying in anticipation of a vast number of claims—

as homes and business are evacuated in the wake of these as yet uncontrolled fires.  Their best advice, “Find out what you are covered for.” 

That same advice is good for those not affected by these catastrophic losses.  With the advantage of time, you can use this opportunity to review your property insurance policies and decide if the coverage is adequate to protect your investments.

The Insurance Information Institute reports that damage caused by fire and smoke is covered under standard homeowners, renters and business insurance policies and under the comprehensive portion of an auto insurance policy. There is also coverage for water or other damage incurred by fire fighters in the course of extinguishing the fire, according to the I.I.I.

Want more information on property and renter’s insurance?  Check out our Insurance page. 

Scroll below to find out more about making an insurance claim.

Coming soon … our interview with David Rush of Kistler Insurance.  Find out how renter’s insurance can not only cover catastrophes, but it can be a profit center for apartment owners. 

Not a member?  Find out how American Apartment Owners Association can save you money on all of your apartment management needs.  Join AAOA now.

Posted by Kim Ezzell on 10.23.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

VITAL TIPS FOR CALIFORNIA FIRE DAMAGE VICTIMS

WHAT CALIFORNIA FIRE VICTIMS NEED TO KNOW TO FILE A CLAIM

If your investment property was damaged in the California wildfires, the Insurance Information Institute has posted the following advice to speed the property insurance claims settlement process:

• Be prepared to give your agent or insurance company representative a description of the damage to your property. Your agent will report the loss immediately to your insurance company or to a qualified adjuster who will contact you as soon as possible in order to arrange an inspection of the damage. Make sure you give your agent a telephone number where you can be reached.
• If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims process and will assist the adjuster in the investigation.
• Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
• Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.
• Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses in making temporary repairs.
• Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
• If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts, as these may be covered by the Additional Living Expenses section of your homeowners policy.
• If your business has been damaged, and you have business income (business interruption) insurance, it covers the profits your business would have earned, based on own financial records, had the disaster not occurred. The policy covers additional operating expenses incurred as a result of the disaster, such as the extra expense of operating out of a temporary location.
•  Serious Losses Will Be Given Priority
  If your home has been destroyed or seriously damaged, your agent will do everything possible to ensure your claim is given priority.

Not a member?  American Apartment Owners Association provides information and services to apartment owners just like you.  Check us out for legal forms, tenant screening, tenant debt collection, property and renter’s insurance, and much more.  Join AAOA now.

Posted by Kim Ezzell on 10.23.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

THREE REASONS LANDLORDS REQUIRE RENTER’S INSURANCE

Posted by Kim Ezzell on 10.10.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

How To Turn Renters Insurance Into a Profit Center

As a Property Manager you may see the logical benefit in encouraging residents to carry risk insurance. It reduces the chance of your having to tap into your own insurance deductible in the event of a residents’ “negligence ”. But you may ask yourself how can this yield profits for me? How much does it really affect my bottom dollar?

There are several ways that requiring renters insurance can increase your revenue, reduce your expenses, and protect you from risk. Consider that nearly 75% of residents have no renters or liability insurance, and property managers often end up paying the price. Losses can be in the form of fire, smoke, explosion, and in some instances, water. If one of your residents caused a fire, they could damage not only their rental units, but other units as well. This could cost you an immeasurable amount of loss if your resident does not have renters insurance coverage.

As an incentive for obtaining renters insurance, property managers can offer monthly lease or rental options at a discounted rate. This will encourage more residents to lease or rent in your property thus increasing revenue. Some insurance companies will offer a transaction fee for every resident that enrolls in their renters insurance program or a revenue paid per door. Simply by presenting their renters insurance program to your residents, you can create an additional source of revenue.

Posted by Dan on 07.26.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

Why Is it Important for your Residents to have Renters Insurance?

Nowadays more property management companies are requiring that residents carry personal liability coverage as a condition of their lease agreements. One reason why they are requiring it is simply because many renters do not choose to obtain it voluntarily. The question of whether to purchase various types of elective insurance is difficult for many because it is money spent on the unknown. This can be especially true of renters insurance. Although many people are long-term renters, many residents live in their properties temporarily and do not want to invest any additional funds in renters insurance. Overall, most renters don’t believe they need insurance. A survey conducted by Cambridge Reports, Inc, for the Insurance Information Institute found that fewer than 3 out of every 10 renters purchase renters insurance. So why should any resident invest in renters insurance and why is it important for you to require it?

Renters insurance provides a simple peace of mind when it comes to the resident’s valuables and personal liability. Nearly 75% of residents have no renters or liability insurance, and community owners often end up paying the price. Losses can be in the form of damages caused by fire, smoke, explosion, and in some instances, water.

Have you ever thought about what would happen if you or one of your residents accidentally started a grease fire and it damages one or more of your units? Don’t think it can’t happen. The Wall Street Journal recently reported a fire that swept through an Austin, Texas apartment building leaving all the building’s units uninhabitable and 20 tenants without homes. Just this month an apartment fire in Detroit took the lives of a mother and her 3-year-old son. Investigators said the fire started on an electric stove. Catastrophes such as these could easily happen on your property and cause immeasurable damage.

Policies for renters insurance will cover your residents’ personal property in the event of a fire, theft, or other liability damages. The policy can also cover living expenses if there are forced to vacate their home because of damages due to a covered loss.

By encouraging your residents to obtain insurance you are informing them that they are the ones responsible for potential losses or personal liability. Explain to them that renters insurance is really the only security they have to replace their belongings in the event they are damaged or destroyed, and to protect their personal liability if others are accidentally injured in their home. Requiring renters insurance can ultimately offer peace of mind to both the property manager and the resident.

Posted by Dan on 07.26.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance