When a landlord enters into a management agreement with us, we will require a copy of the declaration page of their dwelling policy with our company listed as Property Manager or Other Interested Party. At that time, we suggest that landlords review coverage with their insurer to note the differences in coverage between a homeowner’s policy and a dwelling policy that covers a rental property. We also suggest that landlords review the limitations of their policy associated with any extended vacancy periods. Some insurers have provisions forbidding aggressive breeds of dogs in tenant occupied properties, so it is important to review those guidelines as well.
Of course we hope to never need to interface with an insurance company, but due to pipe bursts, roof leaks, sump pump failures, condensation line blockages and sewage backups, we do find ourselves filing and coordinating insurance claims on behalf of our landlords, especially after major storms.
If major damage does occur due to an incident or event that is covered by the dwelling policy, we will discuss with the landlord whether a claim should be filed based on the policy deductible. Some landlords may decide not to initiate an insurance claim if the damage costs are just slightly above the deductible amount and if there is a concern with impact on policy premiums due to the history of claims.
If a claim is initiated our staff and assigned contractors will interface directly with the insurance adjustor and provide photos or other documents as needed. If tenants must be relocated while repairs are completed, we will coordinate with their renter’s insurance provider as well. While we coordinate just a handful of insurance claims per year, we do prioritize the associated work orders to limit the financial impact to the owner and to minimize the inconvenience to the tenant.