Property Manager, Insurances and Furnished Housing.
Admin
Published Date: 2018-02-12
As a property owner, you already know that insurance is a must have item. It is what guarantees you will not suffer a financial loss on your property, but it can also offer you a great deal more. This is particularly true if you offer fully furnished apartments for rent and if you work with a property management company.
Why? To begin with, furnished housing opens up a few liabilities. There is the risk that the items you supply are damaged, destroyed or lost and you need coverage that prevents your profit margin from evaporating should you need to refurnish after a particularly destructive tenant or a problem they cause (think flooding, fire, stains, and so on).
There is also your liability should the furnishings lead to a problem. Mold and allergies are just two issues that your furnishings could cause (or said to have caused).
And why would the manager of your fully furnished apartments for rent be a subject that also relates to insurance? It has to do with any mistakes the manager might make in operating the furnished housing. As a simple example, they might wrongfully evict someone, opening you up to legal issues.
The coverage is often described as "Errors and Omissions" coverage, and it protects you and the manager from any mistakes the manager makes. Should you supply it? You can, but you might insist that the manager offer proof of such coverage. Should you also add managers to the policies you have in place? In a word: Yes. It just makes sense to erase liability whenever and wherever possible with furnished housing, and that is one simple way to accomplish it.
