Multi-family housing complexes such as rental apartments, cooperative apartments, and condominiums have been developed to meet modern lifestyles and living needs.
For residents, owners, and managers, having insurance policies in place that adequately address the specific exposures these structures face is essential for safety, security, and protecting the property’s value.
Those responsible for implementing and maintaining these policies need to be thoroughly aware of the precise details of ownership, owner’s and resident’s legal rights and responsibilities, and the types of liabilities and exposures the property is likely to be subject to. The following are 5 common multi-family property insurance issues:
- Insufficient Limits
- Inadequate Ordinance or Law Coverage
- Utility Interruption
- Hidden Liability
- Directors and officers liability coverage
- Architects or engineers professional liability
- Hired car coverage
- Liquor liability
- Insurance for loss or damage to property in the care, custody, or control of the insured
- Employers liability for employee injury even where workers compensation is not required
- Valuable Records Loss
It sounds obvious, but one of the most common problems is insufficient limits of property insurance to cover a loss or satisfy any coinsurance requirements the policy may have. This is usually the result of underestimating the value of the property or the costs of reconstruction.
Tying in with the above is not purchasing ordinance or law coverage. To provide for added reconstruction costs resulting from compliance with updated building or zoning laws and ordinances, the appropriate amounts and types of coverage must be carried.
Hurricanes, tornadoes, forest fires, earthquakes, and floods often result in utility interruption, even when no direct damage to your property is involved. Off- premises utilities interruption is not typically covered in standard property insurance and in the event of a natural disaster, failure to purchase it beforehand can be catastrophic for your recovery efforts.
Some common liability exposures are not readily recognizable, especially where the exposure seems particularly remote. These can include:
Along with the building itself, valuable documents and electronic records must be safeguarded by being adequately insured. These include tax records, accounts receivables, and client data. Often, insurers will offer premium savings when safe storage methods are in place for important records.
Have questions about your property insurance claim? Feel free to contact Stark Loss for more information about how a Public Adjuster can help.