What is Property Preservation Insurance?
Property preservation insurance is a type of coverage designed to protect businesses and professionals who maintain, secure, or repair vacant or foreclosed properties. This includes tasks like changing locks, boarding up broken windows, removing debris, cutting grass, repairing roof leaks, and winterizing homes.
Who Needs It
This insurance is essential for property preservation contractors, field service providers, and companies working with banks, mortgage lenders, or property management firms. If your business enters, secures, maintains, or rehabilitates vacant properties, this coverage can help protect you from liability and property damage claims.
What It Typically Covers
Property preservation insurance often combines several types of coverage to protect your business operations, including:
- General Liability: Covers bodily injury or property damage caused by your work.
- Errors & Omissions (E&O): Protects against claims of negligence or mistakes in your services.
- Tools and Equipment: Covers repair or replacement of tools if they're stolen or damaged.
- Commercial Auto: Covers vehicles used for business purposes.
- Workers’ Compensation: Required in most states if you have employees; covers job-related injuries or illnesses.
Common Exclusions and Limitations
While this insurance provides broad protection, it typically doesn't cover:
- Intentional damage or criminal acts
- Damage due to faulty workmanship (if not covered under E&O)
- Claims arising outside the scope of your listed services
- Unlicensed or unauthorized work
Always review your policy to understand what is and isn’t included.
Factors That Influence Cost
The cost of property preservation insurance depends on several factors, including:
- Types of services you provide (e.g., lock changes vs. full rehab work)
- Business size and number of employees
- Claims history
- Annual revenue and number of properties serviced
- Coverage limits and deductibles
Proof of Insurance and Compliance
Many clients, especially banks and mortgage servicers, require proof of insurance before awarding contracts. A Certificate of Insurance (COI) shows that you have the necessary coverage. Requirements may vary by state and client, so be sure to understand what documentation is needed to stay compliant.
How to Get a Quote
Getting property preservation insurance is simple. Answer a few questions about your business, and our team will help you find the right coverage for your needs. Get a quote today.
Frequently Asked Questions
What does property preservation insurance protect against?
It helps protect your business from claims related to property damage, injuries, or mistakes made during preservation work.
Is this insurance required to work with banks or lenders?
Many banks and mortgage companies require property preservation contractors to carry specific insurance coverage before starting work.
Does it include coverage for subcontractors?
Not automatically. You may need to add subcontractors to your policy or require them to carry their own insurance.
Can I get coverage for tools and equipment?
Yes, many policies offer optional coverage for tools and equipment used on the job.
What if I do both maintenance and rehab work?
You should disclose all services you provide to ensure your policy offers adequate protection for your full scope of work.
Still have questions? Talk to a local insurance expert.