PMs take a risk by “playing it safe” on landlord insurance
RentCover General Manager, Sharon Fox-Slater said failing to ensure your landlords have liability cover in place can not only leave the landlord exposed but also you and your company.
“These days, there’s a real chance of a lawsuit if something goes wrong and property managers can be exposed in two ways,” she said.
In the absence of landlord insurance, lawyers can recommend suing a property manager or agency either instead of, or in addition to, the property owner.
There’s also potential for the landlord to sue property managers for failing to inform them of the protection available and the need for insurance – or to claim PMs are indirectly responsible for the problem.
“The perception by some property managers that it is risky to get involved in landlord insurance is misguided – at least so far as EBM Insurance Brokers is concerned,” Sharon said.
“EBM’s Professional Indemnity Policy extends to provide cover for RentCover Distributors should something go wrong when dealing with one of the RentCover range of policies. We also do a lot of training for property managers, helping them work through areas where they might be left exposed.”