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.

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.

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.

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.

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.

Multifamily Investors, What Kind of Circuit Breakers Does Your Investment Property Have?

The State Of The Real Estate Investment Is Imperative For Multifamily Investors To Know

Multifamily Investors, Do You Know What Type Of Circuit Breakers Your Real Estate Investment Has?

Multifamily investors, what circuit breaker does your real estate property have?  Why does it matter what kind of circuit breaker it has?  Circuit breakers, along with other home components, can bring down insurance rates depending on any discrepancies that might exist.

Multifamily Investors, You NEED To Inspect Your Circuit Breakers

The reason why you need to inspect your circuit breakers is because they can become a major liability. For example, did you know that Federal Pacific Circuit Breakers, installed from the 1950's to the 1980's, run the potential to cost you more in insurance.  This is because it was found that one in four of these breakers are considered defective and will not trip off.  In fact, it is estimated that these particular circuit breakers are also responsible for 2,800 fires each year due to the malfunction.

Thus, if your real estate property has one, you should know that they are they rated higher than other breaker boxes, and it is likely that you will either pay 15% more in insurance, or be denied for insurance altogether.

Other Components That Matter For Multifamily Investors

When investing in property, it is important that you know what structural issues are present and what that means in terms of insurance.  From the plumbing to the roof, and even how close trees are to your property can all have a significant impact.

Property Liability: Age Of The Home And Age Of The Roof



Did you know that your real estate investment might have a property liability before you even sign any paperwork?  The home's age, as well as the age of the roof can both become major property liabilities.

How Age Of The Home Can Become a Property Liability?

How old is your real estate property investment?   The reason why you need to know is because insurance rates WILL be affected by the age of the property, especially if it's an older property.  For example, if a property was built in the 2000’s and later, then you will see that you will have lower rates.  However, if your property is from the 50's, 60's, and even up until the 80's, you may find that you have high insurance rates.

The general rule is - the older the property, the higher your insurance rates will be!

How Age Of The Roof Can Also Become a Property Liability?

In addition,the age of the roof can also determine what kind of insurance rates you will see.  Again, the older the roof, the higher insurance rates you will get.  In fact, some roofs that are too old may not even be insured at all. A 40 year old roof, for example, may be too old to be insured.  Roofing materials also matter, as there is a preference for some type over others.

As a real estate investor, it is imperative that you look into all aspect of a property when seeking after property insurance.

Claims History, Why This Matters In Real Estate Insurance



Did you know that claims history is one of the most important need-to-know aspects of buying a property?  Whether you are a real estate investor who wants to flip the property,  to rent it out, or simply have the property as a future viable investment; you are going to need to know the claims history of the property to make a better, more informed decision.

The Importance Of Claims History

In the most basic sense, a claims history will let you know what types of claims have been made on that particular property.  For example, if the property is in a Hurricane-prone location, then it is very possible that the house has seen claims made regarding flooding, wind and hail damage, and so forth.  That means if the house has already suffered through flooding, and resulting damage from that, would it be possible that there might be mold issues in the future?  While this may not necessarily be the case, it is possible given the property's history.  As a real estate investor, you need to be aware of any potential liability in order to better protect yourself and your assets and know the details of your investment.

The C.L.U.E. Report, A Way To Your Property's Claims History

Real estate investors need to be aware of what they are buying, period.  The C.L.U.E. Report allows you to get a 'clue' by alerting you to the general history of the property, including any past claims that have been made.  As mentioned, this can protect you and your investment in the future.
When it comes to real estate insurance, claims history is an invaluable tool that will help you better prepare for the future, allowing you to make a smart, informed real estate investment decision.

Flipping Houses? Then You NEED Contractors General Liability Insurance Coverage

Do You Have Contractors General Liability Insurance Coverage?

Contractors General Liability Insurance Coverage Will Help PROTECT Your Investment!

To start, one thing that investors do not realize when flipping houses is that, by default, they become general contractors. They are the ones who will be subcontracting all work for the property. This means that if they do not have contractor liability then they could potentially be left exposed. Moreover, one has to be extremely mindful about who they hire and what kind of coverage is had over the project as a whole. In addition, the structure should also be insured after the fact. Here's what you need to know:

What Is Contractors General Liability Insurance Coverage

True to what it sounds like, contractor liability protects you and your assets in the event that the contractor is negligent or does not do their due diligence in regards to work performed on the property.  For example, if the contractor is supposed to use copper wiring, but fails to do so, then you may be denied insurance altogether.  Or, suppose that the contractor does an adequate job on the surface level, but there is some misstep along the way and later on down the line, your tenant, or the home buyer gets hurts and sues.  Since you do not have contractor liability, then you could be the one found solely responsible.  This why is why contractor liability, is so important when flipping houses, even if you have general real estate insurance.

Why You NEED Contractors General Liability Insurance Coverage

As mentioned previously, having contractor liability ensures that you and your assets are protected, especially if the contractor you hired did not do an adequate job on your property.  On a construction site, anything can go wrong and thus, it is imperative that you protect your real estate investment.

Flipping houses can be extremely rewarding as the return on investment can be high.  However, if you do not have contractor liability then you can find the risks to be even greater.  Ensure that your investment is covered. 

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.