Insurance Spikes Causes Concern Among Florida Property Owners
Florida’s property insurance market is seemingly gearing up for hurricane season, with several local insurers filing for hikes of up to 31% this summer. If approved, these hikes could add hundreds, if not thousands, of dollars onto the current premiums paid by homeowners. According to ABC Action News, hurricanes Irma and Michael, together with insurance fraud, may be the reason behind rising costs, and why a number of property insurance providers have abandoned Florida. This is of great concern, not only to private owners but to property managers as well. In fact, property managers have many considerations as far as insurance is concerned, as they need coverage that protects their clients, their tenants, their business, and the properties they are tasked with managing.
General liability insurance is of the utmost importance
General liability insurance is of great importance to a property manager, as it provides coverage for claims resulting from injury or damage caused. If a tenant, for example, slips and gets injured on a property that you manage, your general liability insurance will grant coverage for claims made against you. The insurance will not only help cover the medical expenses of the injured party, but also the costs associated with obtaining legal assistance, as well as the payouts from settlements. With hurricane season in full swing, the importance of general liability insurance cannot be stressed enough.
Property insurance covers the costs of repairs and replacements
Apart from taking care of clients and tenants, property managers are also responsible for the upkeep of the properties they manage. While some issues are easy to resolve, the damages caused by hurricanes, for instance, can be very costly to repair. For this reason, property insurance can be a lifesaver. Property insurance coverage can help cover the expenses associated with the damages caused by lightning, fire, windstorms, vandalism, and theft. Although a tenant’s own insurance can help to cover damage to the contents of the home, the property manager’s home warranty will cover fixtures such as the oven, countertop, and refrigerator. Should the expected premium hike be approved, this type of insurance cover is the one that will be the most affected by it. Perusing online appraisals of providers will enable a property manager to opt for the most suitable coverage plan available.
Don’t neglect your professional liability insurance
Although professional liability insurance, which is also referred to as Errors and Omissions (E&O) insurance, is not going to protect you against a hurricane, it remains extremely important. This type of insurance is specifically designed to protect against claims such as those arising from wrongful evictions, the use of inaccurate leasing terms, invasion of privacy, and the hiring of unlicensed workers. At the end of the day, the tenant and landlord will both enjoy protection against financial losses incurred due to mistakes made by the property manager.
Adequate insurance coverage is essential for property managers. Not only will insurance protect you from the damage caused by forces of nature, but it will guard against unintentional mistakes as well.