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- 1. ARE YOU MISSING OUT ON COVERAGE? The Top 3 Little Known Hidden Insurance Policy Exclusions www.topfloorinsurance.com Apartment Community Insurance.
- 2. Insurance policies can be a bit tricky to navigate in terms of determining if you have the right coverage for your property. Specialist insurance providers, like Top Floor Insurance, are well versed in what coverages are commonly missing and which coverages apartment community owners should have added onto their policy for that added protection. Your insurance policy, by nature, is designed to restore your property back to its original condition should it be destroyed or damaged in any way as a result of a fire, natural disaster, or peril. However, most apartment community insurance policies do not cover these three areas: ordinance of law, punitive damages, or assault and battery. ARE YOU MISSING OUT ON COVERAGE? The Top 3 Little Known Hidden Insurance Policy Exclusions www.topfloorinsurance.com Apartment Community Insurance.
- 3. 1 Ordinance of law www.topfloorinsurance.com Apartment Community Insurance. Unfortunately, you may find out the hard way that this is not covered or coverage is limited in your apartment insurance policy. Should your property get damaged and need to be repaired, there may be additional costs associated with repairing the structure up to code. For example, if three units are damaged due to a fire and you submit an insurance claim and receive $30,000 to repair the units. However, during the rebuild it is discovered that the electrical wiring in the units was not up-to-code and the entire electrical system in that building needs to be replaced to meet the city ordinance, bringing the total repair costs to $80,000, then you are stuck footing the bill. Keep in mind that older structures, when damaged, may need upgraded electrical, heating, ventilation, air-conditioning, and plumbing units that must be installed according to current code requirements. This could cost you big in unexpected repair costs that have to be completed if you want to rent the units. In some cases, city or state ordinances may require that any structure that is damaged beyond 50% has to be demolished and completely rebuilt in accordance to current codes and cannot simply be repaired. Many apartment insurance policies will not cover the cost to repair undamaged portions and will likely not cover the cost to demolish and rebuild an entire structure, if the entire structure was not damaged to begin with. At Top Floor Insurance, we advise all multifamily property owners to add on more coverage to ensure that they are well protected in the event that repairs have to be brought up to code.
- 4. 2 Punitive damages www.topfloorinsurance.com Apartment Community Insurance. Many insurance policies will not cover punitive damages, and for good reason! Punitive damages are ordered in the case of landlord negligence and are designed to be punishment for some type of wrongdoing. For example, if a fire starts in one building and it is discovered that the fire was caused by faulty wiring that the property owner knew about, but neglected to repair correctly, this could be grounds for punitive damages. The property owner could be forced to pay for personal possessions that were lost as a result of the fire and, in some cases, any relocation fees incurred by the displaced tenants. These types of punitive damages may not be covered under your insurance policy as they are tied not to your property, but to your actions as the property owner.
- 5. 3 Assault and Battery www.topfloorinsurance.com Apartment Community Insurance. It is important to understand the difference between the terms assault and battery. Assault is the threat of bodily injury by force, not actual bodily contact. For example, if a robber has a knife pointed at you and demands your money, the act of pointing the knife is considered assault. Battery is actual physical contact with another person, against their will. In order for it to be considered battery, the other person does not have to be physically injured. In addition to physical altercations, physically restraining someone, or even spitting on someone can be considered battery. Whether it is assault or battery, property owners can be held liable if they knew of the impending danger and did nothing within their power to prevent it. This could lead to the property owner being held liable for the event and could result in steep monetary fines. This also extends to the actions and behaviors of staff that may be working for you on your property, such as maintenance workers, security guards, landscaping crews, cleaning staff, etc. If, for example, a tenant is a victim of assault and/or battery while on your property and you are held liable because you did not keep the premises safe, allowed an argument to escalate, or did not otherwise protect the safety of the tenant, then having a commercial liability policy would be much needed. Commercial liability policies can cover instances where you or your business may be held liable and can pay out, up to a certain amount, to cover the fines associated with your negligence. Now is the time to invest in additional insurance coverage, before something happens that puts your property at risk. At Top Floor Insurance, we have a host of optional coverages to fit your needs and give you the peace of mind knowing you are covered, for whatever may happen.
- 6. With over 25+ years of apartment community insurance expertise, Top Floor Insurance, is committed to keeping property owners informed. Being aware of what is and what is not covered in your current insurance policy is key in making sure you know what risks may be present and what you can do to eliminate these potential risks. With over 25 years of insurance experience, the insurance specialists at Top Floor Insurance fully understand the importance of protecting your property investment. We work to get you the best coverage at the most affordable rate possible because at Top Floor Insurance, we specialize in the apartment community insurance buying process- that is all we do, period. If you are looking to add other coverages to give you the complete protection you need, no matter what happens, feel free to call us at 404-266-3218. Our experienced insurance specialists will prepare a 24-hour price indication for you to review, with no obligation to buy our insurance products! Conclusion Call 404-266-3218 www.topfloorinsurance.com www.topfloorinsurance.com Apartment Community Insurance. Apartment Community Insurance.