Property managers run a big risk when they try to “play it safe” and avoid discussing landlord insurance with their clients.
Blogger: Sharon Fox-Slater, general manager at RentCover
Industry professionals who sidestep the issue risk exposing their own business to legal claims.
These days, there’s a real risk of a lawsuit when something goes wrong. If you fail to make sure your landlords have liability cover in place, it’s not only the landlord left exposed but also you and your company.
In the absence of landlord insurance, lawyers can recommend suing an agency or property manager in addition to, or instead of, the property owner.
There’s also potential for owners to sue agents for failing to inform them of the protection available and the need for insurance – or to claim an agent was indirectly responsible for the problem.
In our opinion, the perception that it’s risky to get involved in landlord insurance is misguided.
EBM’s Professional Indemnity Policy covers all RentCover distributors if something goes wrong when dealing with one of our policies.
We also train property managers, helping them work through areas where they might be left exposed. Examples include:
• failing to perform or properly document property inspections;
• not having a system in place so colleagues know where you are; and
• failing to verify the credentials of tradespeople.
It can be uncomfortable having the tough conversation with clients but, remember, they will be the first to thank you if disaster strikes and they find themselves protected because of your care and good advice.
ABOUT THE AUTHOR
Sharon Fox-Slater is the Managing Director of EBM RentCover, which protects more than 150,000 rental properties across Australia. She commenced a role with EBM back in 1993 and was part of the core team that helped launch one of Australia’s first landlord insurance policies into the market. She was also the first woman in Australia to complete the Advanced Diploma in Insurance Broking, and is well equipped to educate property investors and property professionals about the value of aligning with a specialist landlord insurance provider.