From fire to hail, wind, or hurricane…bad weather can cause millions in damages to a complex. Unpredictable North Texas weather means that Dallas property owners/manager, in particular, need reliable business insurance. Below are a few situations we hope you, as a property manager, never find yourself in:
|Property||In 2011, a North Texas property manager found a very cheap insurance program for his apartments. The next year a hailstorm ravaged the area, damaging roofs on several complexes he managed. Unfortunately, his policy had a 5% wind/hail deductible that cost him over $500,000.|
|Business Interruption / Extra Expense||A unit tenant, as he was rushing to work, accidentally left his stove on. The resulting fire burned down several units. Because the building owner’s policy had a 72hr BI/EE deductible, he had to cover the tenants’ living expenses (hotel bookings) for 3 days while the apartment was restored.|
|Liability||Severe weather caused an apartment complex roof to collapse injuring 2 tenants, and causing $15,000 in medical expenses. Because the property manager properly endorsed the policy, he did not experience any financial setback.|
Apartment building owners and property managers face insurance situations on a regular basis, dealing with insurance requirements from the banks, facility maintenance issues, and liability concerns. Key insurance issues for property managers and apartment building owners include….
- Affordable pricing
- Wind/hail coverage
- Lender requirements
- Replacement cost and ACV valuation
We wrote an article breaking-down these key issues, explaining concepts that will help you better understand your apartment insurance program.