2 Multifamily Insurance Exclusions That All Investors Should Know

Are You A Real Estate Investor Shopping for Multifamily Insurance?

Real Estate Agents Who Invest In A Multifamily Dwelling NEED The Right Multifamily Insurance

Are you a real estate investor with a multifamily dwelling in your portfolio? Then you NEED multifamily insurance. In addition, there are two specific exclusions that you may need to look for when you are purchasing a new property.

Multifamily Insurance Exclusion #1 - Assault and Battery

Did you know that general liability insurance is not enough to cover a fight, an assault, an altercation, shooting, or even a dead body on the premise.  Although, you may believe that these kinds of problems may not happen on your multifamily property - know that they can happen anywhere.  In addition, you must also think of the litigation and potential lawsuit that may follow these types of insurance claims.  For example, we once saw a case in which a multifamily property owner was sued because of improper lighting, after a fight broke out, and inevitably they won.  However, the insurance would not cover because the multifamily owner did not have assault and battery coverage.  If you are not protected with the right insurance, you can find yourself liable.

Multifamily Insurance Exclusion #2 - Standalone Dog Policy

In a similar vein, if you do not have a standalone dog policy then you could be potentially left exposed.  Quite simply, if you are going to allow tenants to own dogs, no matter what the breed, then you would be left exposed.  Also keep in mind that service animals are legally allowed, even if they are a type of bull breed.  That means if the tenants' dog bites another resident, or a visitor, you can be sued by the victim.  There have been cases in which a multifamily investor has been sued over a dog attack and insurance did not cover the resulting damages.  Thus, when getting multifamily insurance, your agent needs to know what would be best for you and your investment.

Knowing the above exclusions is only part of the process of getting multifamily insurance that helps your investment. Secondary would require finding the right insurance agent. At Benchmark we make it easy to shop for insurance and find the rates that work best for you.

Insurance Claims, Here’s What You Need To Know

Are You Having Trouble With Insurance Claims?

Filing Insurance Claims Are Necessary For Your Investment

Insurance claims can be a complicated process and, at times, that complexity can cause discrepancies, general confusion, or act as a time drain. Here's what you need to know about insurance claims.

What Insurance Claims Are For 

Insurance claims are essentially the way in which you make a formal request, as an insurance policy holder, regarding a policy event or to seek after loss coverage.  For example, if you are a real estate investor and your house suffers fire or flood damage, then you would need to make an insurance claim in order to get coverage for the damage.  Your agent would need to access the damage and determine if it would be covered under your policy.

What You Need To Know About Insurance Claims

Insurance shouldn't be scary!  That is the number one thing you need to know about insurance claims.  However it is also imperative  to first and foremost, know what kind of investor you are.  For example, if you own an auto garage , then you will need a different type of insurance than if you owned a restaurant.  The same would be true when it comes to niches within specific industries.  For instance, flipping houses as a real estate investor requires different insurance than does being a multifamily investor.

Aside from knowing what type of investor you are, you would also need to document everything.  It is good standard to keep documentation at all times, but it is especially important when it comes to insurance claims.  Having a conversation with your agent it also extremely important as well.

Avoid the headache, because we have a claims consulting process that is simple to understand and is just as effective.

 

Need Real Estate Insurance? Make Sure Your Agent Asks The Right Questions

REAL ESTATE INVESTORS, DOES YOUR INSURANCE AGENT ASK THE RIGHT QUESTIONS?

YOUR INSURANCE AGENT SHOULD UNDERSTAND THE TYPE OF INSURANCE THAT REAL ESTATE INVESTORS NEED

Too often, real estate insurance agents make a significant misstep by failing to ask the appropriate questions. For example, information such as who you are subcontracting (and whether or not they are insured), what kind of investment property type you have (for example are you housing for students or section 8 housing), as well as what type of construction you might be undertaking, are all relevant information. An insurance agent that specifically deals with this type of insurance will not only know to as these questions, but they will also know what the answers mean in terms of what types of real estate insurance rates you will see.

The Problem With Not Knowing About Real Estate Insurance

Without specific and direct questions, your agent will simply not know what type of insurance you will need for that particular property. This can cost you significant time and money in the long run. For instance, if you are a multifamily real estate investor, then it is suggested you get dog bite coverage, liquor liability if you have a pool, and a number of other liability and coverage types. All of this would give you the best rates possible  for the type of insurance you need. 

Real Estate Insurance Know-How

Watch the video below and learn exactly what your insurance agent should be asking and how it important it is to determine what type of real estate insurance you need before making any final decisions. Remember, if you need real estate insurance, we make it easy to shop for insurance and get the best rates possible.

What to Consider When Choosing Multifamily Properties

ARE YOU A MULTIFAMILY INVESTOR?

Are you looking to grow your real estate portfolio quickly? Multifamily investments are not only a great investment, but they can work to expand your portfolio very quickly. Moreover, they can often have long term value as well. However, there is no doubt that this type of investment can sometimes be seen as complex and navigating them can be difficult if you are not sure what considerations to make.

If you are thinking about a multifamily property, or you already have this type of real estate already in your portfolio, here are a few things you should consider:

What is Fire legal Liability Endorsement and What Does it Cover?

business fire insurance
business fire insurance

Do you know what a Fire legal Liability Endorsement is?  How about whether or not you have a potential fire legal liability.  Here's what you need to know:

Do You Have Fire Legal Liability? 

In mere minutes, a fire can wreak havoc and cause major damage to any business. The devastating inferno could cause your property to go up in smoke, and your finances, too.

When reviewing your business insurance, don’t wrap up your documents without securing fire damage legal liability. Anyone who wants to succeed in their business should be properly insured and fire damage and liability are a very real concern for many business owners.

What Is Fire legal Liability Endorsement?

It is known as both Fire Legal Liability or Fire Damage Legal Liability. In some documents, it can be referred to as "damage to premises". Fire damage liability is typically provided as an exception to most policy exclusions for the insured property.

Why is it important to have fire insurance for business?

A fire disaster is a businesses’ worst nightmare. And yet not enough businesses take the necessary steps to guard themselves against potential damages and secure business fire insurance.

We know how hard it can be to navigate the legal system, so here are some tips for getting commercial property fire insurance for your business.

How Important is Fire Legal Liability in Property Lease Agreements?

Does liability insurance cover fire in a standard business policy? In many cases, it does not.

Don’t skip over fire liability, as it’s a key point in policies. Having this clause included can provide coverage for property damage due to a fire to the leased or rented property. It is especially key if the fire and damage were caused by someone else’s negligence.

what is fire legal liability?

What Exactly Is Covered in Fire Liability Insurance?

Fire insurance will normally cover the damages and losses directly caused by the fire. In some cases, this coverage can help to replace, repair, or reconstruct your property after a fire. The property insurance policy will have a set limit, which you will discuss and agree upon with the insurance firm.

Fire damage legal liability is usually limited to only fire losses and can only be applied to the leased or rented premises ‘occupied’ by a tenant. It does not cover any specific damage to the body of persons affected by a fire, or emotional and health problems that ensued as a result of the disaster.

Because some insurance professionals often focus more on other major coverages, the business fire insurance policy is often overlooked.

Always Read Between the Lines

Some owners wonder if liability insurance covers fires. Unless spelled out, it may not.

Before you sign any lease contracts, ensure that you are covered if damages from fires occur. If not, you may be forced to pay the damages. Unless you have additional insurance in advance, it does not matter whether the fire was caused by negligence, or by a natural disaster. You may be held responsible.

As part of your risk management strategy, you should always review lease agreements periodically. Taking a proactive approach to risk is the only way to ensure your full security, safety and prevent financial problems.

Learn more about Fire Liability and Insurance from Benchmark Brokers

 

At Benchmark Brokers, we understand the hazards and risks many businesses and their owners face. We specialize in providing insurance for all types of properties, from office buildings to apartments and commercial spaces.

You can learn more about Benchmark's commercial property insurance by visiting our website or scheduling a call. Contact us online today!

Our experienced agents understand your challenges and are committed to working with you to provide the best coverage. Our flexible pricing plans are reasonable and affordable. We always evaluate your needs and give you options for deductibles, limits, and requirements.

Contact us today to get an insurance quote from Benchmark, or ask any other questions regarding commercial property insurance in Texas.