Habitational Insurance

As a commercial property owner or landlord of a residential dwelling, such as an apartment, condominium, or multiunit dwelling, you need habitational insurance to help protect against claims from third-party injuries and property damage due to fire, weather-related storms, theft, and more.

Landlords need to protect their property similarly to any other homeowner or renter. No matter what type of residential properties landlords provide for rent, (e.g. condominiums, apartment complexes, etc.) there are inherent risks for those individuals.

Tenants can potentially damage property and steal belongings, among other concerns. Rental properties can also sustain damages due to natural disasters. Fortunately, habitational insurance coverage is specifically designed to protect landlords and tenants against these types of incidents.

Who needs a habitational insurance policy?

Habitational insurance is essential for anyone who owns and operates a commercial residential property, regardless of how many tenants you have.

Examples of properties that qualify for habitational insurance include:

• Condos
• Student Dormitories
• Townhomes
• Boarding Houses
• Apartments
• Rental Homes
• Hotels
• Timeshares
• B&B’s

What is habitational insurance?

A responsible general contractor takes care and invests in his reputation. Having both license and insurance shows that they care about the quality of their projects. Furthermore, it is a good indication that the contractor you hire is reliable and in it for the long haul.

Habitational insurance is a form of liability insurance that provides coverage for landlords for claims arising from injuries to tenants or damage to rental properties due to storms, fires, theft or vandalism. In certain locations, this type of insurance policy can also include earthquake or flood coverage.

Landlords are able to benefit from acquiring habitational insurance for a condominium, an apartment complex or any other similar type of rental property.

How can I reduce my risk as a landlord?

Maintaining an active insurance policy is important, but you can also reduce your habitational insurance risks to keep your premiums down. The top risks you need to be aware of are fire, swimming pools, water damage, slips and trips, and playgrounds.

Fire

The best way to prevent costs incurred by a fire is to take preventative measures. Equipping all rental units with working smoke alarms and regularly maintaining the alarms is key.

The National Fire Protection Association (NFPA) recommends replacing your smoke alarms every ten years and changing the batteries in each alarm at least once a year.

You can create an extensive, interconnected net by making sure you have fire alarms in each bedroom, outside each sleeping area, in the living space, and one at least ten feet from the nearest cooking appliance in the kitchen. Make sure to follow the manufacturer’s instructions for installing and maintaining the alarms you have purchased.

Swimming Pools

While swimming pools may attract tenants to your property, it’s vital you follow proper health codes and implement safety measures to keep your tenants safe. If you’re unsure of your local health codes, you can check with your city, county, or state health department.

>You can minimize risk by keeping the proper rescue equipment in place and putting up clear, readable signs with the pool rules. Prevent accidents by maintaining a high-quality fence around the pool.

Water Damage

Water damage can be a difficult risk to keep track of. Whenever you enter the premises, keep an eye open for any puddles, stains, or mold. You can also make tenants aware of what water damage can look like so they can report to you if necessary.

Landlord & Tenant Protection

First and foremost, a habitational insurance policy will protect both you (the landlord) and your tenants. This type of policy covers incidents of vandalism on residential properties; specifically, it will pay for any damages to your property (e.g. walls, floors, etc.) and its contents (furniture, HVAC systems, etc.) that result from such actions, which can often be expensive to repair. As with any other type of policy, be sure to ask your insurer about your coverage limits.

Legal Costs

If a tenant sues for an injury he/she sustained on one of your properties, a habitational policy can provide for the associated legal fees. The sum of these costs will vary based on the specific factors including the nature and severity of the injury and the state where the event occurred.

Coverage Of Natural Disaster Costs

A habitational insurance policy can also cover the costs of repairing or replacing structural damage resulting from natural disasters such as storms and fires. Certain areas in the coastal states like Florida are at higher risk of flooding

At first glance, habitational insurance may sound like another term for home insurance, but it isn’t. You may have also heard this type of insurance referred to as landlord insurance.

Regardless of what term you use, habitational insurance can protect you as an owner of a commercial residential property. If you rent out homes, apartments, boarding houses, condos, hotels, or other types of residential properties, habitational insurance is for you.

Habitational insurance is beneficial because it protects not only the property, but it can protect interior furnishings as well.

Your commercial residential property is unique, and you can tailor a policy to reflect its unique needs. Some habitational coverage options include the following:

General liability — covers the cost of property damage or bodily injury that occurs on your business property or as a result of your products, services, or advertising.

Wind, fire, and storm damage — if your property is damaged or destroyed by wind, fire, or a storm, this coverage can help you cover significant expenses. Depending on your area, you may also consider earthquake and flood coverage.

Vandalism and theft — vandalism often requires its own separate coverage as it can be extensive and expensive to repair. You may also be responsible if one of your resident’s property is stolen while it is on your business’s premises.

Signage — Outdoor signs may not be covered by a typical habitational insurance policy. Signage coverage can cover damage done by inclement weather, fire, vandalism, and theft.

Equipment breakdown — Expensive equipment and appliances like central AC units and fridges may suddenly break. Equipment breakdown coverage will help if you aren’t able to afford the sudden replacement of integral equipment.

Environmental cleanup — if any of your tenants are injured or become ill due to pollutants like mold in your property, then you may be faced with litigation. Environmental cleanup coverage can cover cleanup costs and bodily injury.

Determining the right amount of commercial liability insurance for your business depends on several factors, including the type of business you run, its size, location, and the level of risk it faces. For example, a construction company typically faces more risks than a web design agency, and therefore may require a higher level of coverage.

Angel Family Insurance can help you assess your business's unique risks and ensure you have adequate coverage to protect against potential liability claims.

In conclusion, commercial liability insurance is an essential part of any business's risk management strategy. By protecting your business from potential lawsuits and claims, it allows you to focus on what you do best running and growing your business.

Angel Family Insurance makes it easy for you to get a commercial insurance quote. Choose to get your commercial insurance quote online in the comfort of your own home and at your own pace.

There are different types of commercial insurance coverages you can get to help protect your company. When you get a commercial insurance quote, you can choose the specific coverages you need for your company.

Many companies start with a Business Owner’s Policy (BOP). A BOP gives your business a good foundation of protection. That’s because it combines three essential coverages: business property insurance, general Liability insurance and business income insurance.

At Angel Family Insurance we are committed to helping you find the right insurance coverage at the best price. We are an independent insurance broker with options for you.

Our experienced, local insurance agents, take the time to assess your individual needs and develop a policy that fits your budget.