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As a landlord or property manager, you’ve got a lot of responsibility. From leasing to maintenance, there are a lot of potential risk factors you need to mitigate. One way that you might find yourself in hot water as a landlord is in regards to how insurance issues are addressed in your lease.
When it comes to leasing, it is typical that both you and your tenants will each be held to specific responsibilities and duties. However, there is an additional oneness on your as a landlord to make sure these responsibilities are addressed correctly in your lease. Otherwise, you may be left holding the bag should an issue arise.
This episode, we take a look at some common insurance pitfalls that often go unaddressed until they become an issue.
3 Potential Insurance Pitfalls
Renters Policy – Many multifamily + single family leases require tenants to have renter’s insurance. While this can be a good idea, it can often be poorly executed in the lease. Negligence in enforcing renters insurance often falls on the property manager and/or landlord for not ensuring the tenant does not have valid insurance.
Rent Abatement – If your tenant is granted rent abatement following a casualty at the property, when can you expect to get reimbursed for loss of revenue from this lost rent?
Tenant Improvements - If you are installing tenant improvements, insure it yourself. Leaving insurance on tenant improvements solely to the tenant can open you up to unnecessary risks: preclusive clauses, co-insurance provisions, exclusions, etc.
About Our Guest:
Jimmy Clark is the Senior Vice President and Real Estate Practice Group Leader at Harden, one of the southeast’s largest risk management and insurance firms.
This episode, Jimmy offers up three essential tips all landlords need to know about leases. He shares the common insurance pitfalls that you need to make sure are addressed with your tenant(s) when drawing up your leases.
If you want more information on common insurance pitfalls when it comes to your real estate investment, you can contact Jimmy directly at jclark@hardeninsight.com or 813-367-5609
