Apartment managers have a need for proper insurance coverage. Apartment managers often get caught in disputes between owners and tenants. Managers can not only be sued by their own employees, but also by the property owner. Also, property managers who have an equity interest in property have increased risks that often lead to conflict of interest claims. There is increased litigation holding all professionals to a higher standard, including property managers.
If you own property that is leased to others, lessors risk Insurance is a must-have. Lessors risk coverage is necessary to adequately protect your investment from litigation as the result of an accident.
We thought it would be helpful to identify a few common claims made against property managers.
Common Property Managers Claims:
A property manager managed a small apartment complex. The property manager failed to maintain the property as contracted, which included maintaining the exterior and parking lighting. A visitor was injured while exiting the parking lot at night, and sued the owner and property management company for $15,000. The property manager was held responsible for the loss and settled the claim.
A property manager of an apartment building failed to maintain and update the apartment as required under the agreement. As a result, the owner was forced to lower rents, and the building owner sued the property manager for loss of income.
A fire destroyed 35 units of a 100-unit apartment complex. The owner suffered lost rent for 120 while the restoration took place. The insurance covered the damage to the building as well as lost income or loss of rents, which totaled over $136,000.