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Multifamily Housing Insurance Will Help Mitigate Risks

Do You Have Multifamily Housing Insurance?

If You Do Not Have Multifamily Housing Insurance, Then Your Investment May Be At Stake!

Do you have multifamily housing insurance?  If you do not, and you are a real estate investor that focuses specifically on this market, then your investment may be at risk!  Here's why:

What Is Multifamily Housing Insurance?

True to what it sounds like, multifamily housing insurance is strictly for multi-resident properties, such as apartments.   This type of insurance is strictly for any issues that may be associated with a multifamily property, such as damage to the property directly.

This is different than other insurance types because it is highly specialized and applies to multifamily units, and the potential problems that they may bring.

Why Do You NEED Multifamily Housing Insurance

Anything can go wrong with a multifamily property.  We have seen the following:

  • Dog Bites
  • Drug Deals
  • Hoarders
  • Destruction of the property
  • and more!

All of these can carry serious liabilities that can potentially undermine your investment.   You need the RIGHT insurance in order to protect your investment.  If any of the above should happen, your tenant could not only potentially sue, but you could run the risk of paying out considerably.

For example, in one case of a dog bite, we saw a tenant sue and win a million dollar lawsuit because the investor did not have the right kind of insurance.

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Houston Multifamily Insurance Liabilities: Slips, Falls, And Bedbugs

If You're A Multifamily Real Estate Investor Then You Need To Be Aware Of Houston Multifamily Insurance Liabilities

Houston Multifamily Insurance Liabilities Can Include Bed Bugs, As Well As Slips And Falls

Houston Multifamily Insurance Liabilities can seriously impact your real estate investment.  Not only can they create a potential problem with the reputation of a multifamily property, making it harder to fill up capacity, but it can also lead to potential lawsuits as well.

Here's the ones you need to be aware of:

Houston Multifamily Insurance Liabilities:  Bed Bugs

Bed bugs can be an extremely problematic occurrence, as they are not only hard to treat once they make their presence known, but they can also be a major liability.  This can be especially true if the tenant claims that the bedbugs are a result of negligence by the property itself, such as failing to conduct routine insect sprays.

The primary goal for any real estate investor is to minimize risks as much as possible.  Thus, it is important for you to not only have the property sprayed regularly, but it is also necessary to keep all documentation to showcase the fact that you did your due diligence.

Houston Multifamily Insurance Liabilities: Slips and Falls

Another important liability to keep track of is slips and falls, which can occur because of a wet surface, stairs, and any number of hazards.  These can become major liabilities and can potentially lead to lawsuits, should the tenant become injured as a result.

The primary way to circumnavigate the potential for slips and falls is to ensure that the property is properly maintained and that signage is always posted, alerting tenants of any potential hazard.

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Having A Dog On The Premise Can Become A Major Multifamily Insurance Liability

Don't Let Dogs Become A Multifamily Insurance Liability

You Can Prevent A Multifamily Insurance Liability By Getting Dog Bite Liability Insurance

Did you know  that dog bites can often become a HUGE multifamily insurance liability?  In fact, dog bites are one of the biggest insurance claims period.  It is imperative to understand why this is, and how you can work to prevent this type of multifamily insurance liability.

How Can Dogs Become a Multifamily Insurance Liability

On average, there are around 4 million dog bites a year in the United States alone.   Broken down, this is about $30,000 to $50,000 in monetary claims.  While the level of severity for dog bites can certainly differ, the above numbers reflect an estimation of a very serious problem.

It doesn't matter if the dog is a bull breed or a small toy dog - dogs can often become unpredictable.  If you do not allow dogs on the property, keep in mind that, if the dog is an assistance dog, then it will need to be allowed (even if it is a bull breed).  Thus, even if there are only a few dogs on the premise, this can be potentially problematic and raise the level of risk for your property.

Preventing A Multifamily Insurance Liability

The primary goal is to try to prevent lawsuits from springing up.  The best way to do to that is to invest in dog bite liability.  That way, should a dog unfortunately bite a tenant, you can better cover your assets.

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Install Security Cameras For Better Assault And Battery Insurance Coverage

You Need Better Security For Assault And Battery Insurance Coverage

Your Assault And Battery Insurance Coverage Can Be Affected By Your Own Efforts

Do you have the right Assault And Battery Insurance Coverage for your multifamily property?  Anything can happen at a multifamily building; no matter what location it resides in and the type of tenants you might have there.  Crime essentially occurs everywhere, and no property is completely immune to problems that may occur.

What Is Assault And Battery Insurance Coverage

This type of coverage essentially protects you from any act of violence that occurs on your real estate property.  Fighting, shootings, and stabbings can all create major liabilities, and potential lawsuits.  This not only costs you time, but also money.  As a real estate investor, this type of coverage allows you to better protect your multifamily investment.

How Security Cameras Help Assault And Battery Insurance Coverage

The type of crimes that occur and their severity can greatly differ.  For example, a fist fight can break out between tenants, which may render hospital visits for both parties, or a break-in occurs that results in the death of the tenant.  There can even be more heinous and unfortunate instances that can not only have long lasting implications for the reputation of the property, but you may also be held liable.

That is why security is a must-have investment for any multifamily property owner. Security measures can include security cameras, gates, patrol, and so forth.  Not only does this create an actual record of what has occurred, which can minimize liabilities later, but they can sometimes be a deterrent to crime altogether.

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Property Type Crime Rates Affect Your Insurance Rates

What Type Of Property Is Your Real Estate Investment?

Knowing The Answer Will Determine What Kind of Crime Rates You Will See, Impacting Your Insurance Rates!

Did you know that property type crime rates will determine what insurance rates you get?  Real estate investments come in all shapes and sizes, as well as different types.

What Are Property Type Crime Rates?

Your type of property will determine the crime rates you will see.  For instance, if you are housing students, what type of issues could they potentially run into?  There is no doubt that this would be different than section 8 housing or assisted living.  No matter what type of property you have, you must also consider crime rates.

As a real estate investor, you must consider all aspects of your investment, not just the physical aspects of the property.

How Property Type Crime Rates Affect You

The types of crime will not only differ from area to area, and from type to type, but they will also vary in their level of intensity.  For instance, section 8 housing may warrant more violent crimes than assisted living facilities.  It is equally possible that you may pay higher in insurance, depending on how high the crime rate is.

When shopping for insurance, know your property type. That way you will not only know what type of crime might surface, but you will also have an idea of what the comparable insurance rates might be.