Multiple Owners, Multiple Insurance Costs
A landlord often manages properties for multiple owners, trusts, LLCs and partnerships. A midwest landlord approached the brokers at BuildingManagerInsurance.com after one of his managed buildings was non-renewed by their current insurance carrier.
By grouping some coverages and strategically leaving several separate the manager was able to show a 20% cost reduction to his clients. In addition, coverage was improved and several gaps were identified and filled.
Inadequate Insurance During Fire
An older, unique, city building suffered a three alarm fire and extensive damage that necessitated an almost complete rebuilding of the structure. The policy the manager had placed for the investors did not have appropriate limits for the upgrades needed to meet new codes and the claim was only partially paid.
Working with an expert broker to examine the structures and their replacement costs is necessary to ensure the insurance purchased will cover complicated and expensive repairs. Commercial insurance policies penalize policy holders for under-insuring and often have very little coverage for rebuilding to newer building codes.
Landlords and building managers are often aware of discrimination against tenants, one of the main sources of lawsuits they face. However, a suburban condo manager was hit with an unexpected discrimination claim from a maintenance contractor.
As manager for a mid-sized condo development the firm had ordered bids to take over basic maintenance for the complex. The condo board decided to accept a higher priced bid from a well known company. When a minority owned operator found out his bargain basement bid was not accepted, he sued.
Condo managers face unique exposures as the insurance coverages should be coordinated with each individual condominium board. The brokers at BuildingManagerInsurance.com work with managers to ensure the coverage purchased by condo associations provides appropriate coverage for their vicarious liability.