Apartments today are an increasingly valid way to live for people of all ages. For many years, the conventional wisdom was that renting was simply throwing money down the drain, but this is no longer the case today.
It's becoming clear for so many people that home ownership simply isn't always the best idea. From depreciation of home values to the massive responsibilities it takes to keep a property up to code, many people are finding that renting is the only way to go.
Not only are people not tied down to a mortgage payment, but they're also free to come and go as they please. The more flexibility the tenant has, the more likely they are to continue to rent — especially when tenants change careers and locations more often than they used to. So if you're planning to own your apartment complex, you certainly have your work cut out for you. You may wonder what exactly apartments owners general liability insurance is, and why you need it. Find out more about what it means to have the right level of coverage, and how it can set you up for more success.
Lawsuits
General liability coverage is a blanket way of keeping you from being held at fault for a number of different issues.
One of the worst things that can happen to someone is being sued by a tenant, which is only likely to become more common in the future as more people decide to rent instead of buy. Accusations when it comes to general liability can be anything from safety concerns (e.g., failing to provide a tenant with a safe environment) to broken promises (e.g., promising fix or replace an oven without actually delivering on that promise.) It's your responsibility to address and resolve the concerns. General liability insurance is a way to keep your head above water when it comes to fighting or settling legal claims against you.
Property Damage
From storms to hail to fires, a property can become damaged in any number of ways. When it comes to general liability, you get blanket protection against a number of different events that may harm your property. It's not easy for people to prepare for these types of catastrophes, and it's not always a matter of buying better materials for the building (e.g., fire-resistant insulation, etc.) In addition to major events, there are also plenty of things that can happen to an apartment over time. Even regular maintenance may not always combat the wear and tear on major structural components like the roof or the walls.
Liability insurance means that you have a way to fix everything back up so that tenants can get back in as soon as humanly possible.
The Criminal Elements
Criminals are everywhere, and they're not always very careful about what they do when they get a property. From vandalism to theft, their destructive path can end up costing a property owner thousands of dollars. With apartment owners’ general liability insurance, you have a way to cover all of the potential wrong-doings that other people may commit against your property.
From slander to disgruntled employees to a loss of rental income, apartment owners have to stay on their toes.
General liability and property insurance may not be able to protect you from everything, but it can go a long way when it comes to keeping yourself from ending up in the middle of a very undesirable situation. Better screening of tenants and employees plus regular investments and maintenance of the property will help reduce your risks immensely, but it can't eliminate them entirely.