Having the right type of insurance and the right amount of insurance is important for anyone who owns property. It becomes even more important when it comes to rental properties and temporary furnished apartments, as you have others who are living in the unit. You need to cover the unit, along with any issues that might arise there. If you own property and you work with a property manager, it is becoming increasingly important to list the manager as an additional insured party on the policy. Later, we’ll discuss why it’s a good idea.
What Insurance Policies Does the Property Manager Have?
Many times, property management companies will carry a variety of different types of insurance, including liability insurance. Another term for this is Errors and Omissions insurance. The aim of this type of policy is to help protect the managers from things such as wrongful eviction, using unlicensed contractors, and invasion of privacy. It essentially helps to protect both the owner and the property manager from financial losses in the event the manager makes an error on the temporary furnished apartments. Ask your property manager if they have this type of insurance. It can provide you with a substantial amount of peace of mind. In addition, they should have general liability insurance.
Should the Property Manager be Considered an Additional Insured Party?
While the property manager may not have an actual stake in the financial interest of the home, they do still help take care of the property. They offer a variety of services to help them with this job as well, and this often means they are taking on liability and risk similar to the homeowner. While E&O insurance, mentioned above, helps to protect them from claims resulting from services they provided, it doesn’t protect from issues that stem from the home. This means that the property manager could be at the receiving end of claims that come from something that happens because of the property.
Let’s look at an example of how this might occur. If there is a leak on the property, and the leak causes some type of injury to another party in the home, then the property manager could be vulnerable to a lawsuit that originates from this incident. Because of these types of issues, a number of property managers now want landlords to add them to their insurance policy. This ensures they are an additional insured, and that protects them by giving them the same coverage that the homeowner has. Many insurance companies offer this possibility today, but not all do. It’s an important question to ask when talking with your provider.
Ask for Clarification When Choosing Insurance
The insurance world is anything but cut and dry. The terminology can often seem confusing and convoluted, and often, it can cause a policy to mean something different than what the policy holder actually believes. It is therefore extremely important for anyone who is getting insurance for the temporary furnished apartments they are renting out to understand exactly what the policies cover and how much insurance they should get. Be sure to ask plenty of questions of the insurance provider, and make them explain everything to you in layman’s terms. Additionally, ask as many questions as you have regarding the insurance for the temporary lodging. If they can’t provide you with a good answer, speak with another insurance company.
What Is ARDI from Corporate Housing by Owner?
Those who are choosing to rent temporary lodging may want to buy their own insurance plans to cover any potential damage that might occur while they are there. Corporate Housing by Owner offers Accidental Rental Damage Insurance, or ARDI, with their partner Travel Guard. The company currently offers three different policies, all of which are a onetime charge and are good for up to 180 days. If the term expires and the renter is still in the temporary furnished apartments, they need to buy another policy.
The lowest cost plan is $29 for up to $500 in damage coverage, followed by $49 for up to $1,500 in damage coverage. The third and final option is $69 for up to $3,000 in damage coverage. Why is this option good for corporate housing renters of temporary furnished apartments? At CHBO, renters are able to pay this instead of a security deposit on the property, which can drastically reduce their overall rental price while still keeping them covered.
ARDI is the perfect way to cover a corporate stay in temporary lodging. It provides the renters with some additional peace of mind as well, since they will not have to worry about any small issues or damage that occurs on the property. It’s always important to take great care of the temporary furnished apartments, but accidents can and do happen. This makes them easier to deal with.