While insuring the physical structure of a property is crucial, it is equally important to consider the liability risks you face as an investor. Most property owners are familiar with the significance of carrying a property insurance policy, but the potential financial impact of liability incidents is often underestimated. A single liability claim can cost significantly more than a property loss, resulting in financial burdens such as legal fees, medical costs, and potential settlements. Thus, having applicable liability coverages is not just recommended, but essential for protecting your real estate investment business. Below are brief outlines of NREIG’s liability offerings.  

Premises Liability (PL)

We cannot stress enough the importance of carrying at least a Premises Liability policy for any property you own. As the property owner, you have certain legal responsibilities to ensure the safety of visitors, both invited and uninvited (e.g. trespassers or squatters). It is your duty to properly maintain the property, repair any potential hazards, and warn residents of potential dangers. Failure to adhere to these responsibilities may be considered negligence, and resulting injuries or death could get you caught up in a lawsuit.  

NREIG’s Premises Liability includes coverage for: 

  • Payment of bodily injury or property damage for which you are legally obligated to pay. 
  • Medical expenses for the injured party.  
  • Coverage for carbon monoxide pollution.  
  • A sublimit for canine liability to protect you in case of damages caused by a dog on your property.  
  • Defense costs such as counsel, court fees, and judgements. 

*NREIG can offer Liability-Only policies as well as Vacant Land Liability.  

Our limits for Premises Liability start at $1 million per occurrence with a $2 million aggregate per policy period, per location. Higher limits of $1 million per occurrence, $5 million aggregate and $2 million per occurrence, $5 million aggregate are available upon request. Umbrella and Excess Liability policies are available to NREIG clients through our Program partner. Please contact your Client Service Advisor for a referral.  

Property Management Errors & Omissions (PMEO)

While some investors opt to hire a professional property manager (PM), others may choose to take on responsibilities themselves. These duties may include setting rent rates, screening tenants, managing leases, handling maintenance, and resolving tenant disputes, all of which open you up to a whole new set of liability risks likely not covered by your Premises Liability. PMEO insurance is for property owners who self-manage their rentals. PMEO covers the unique liability risks associated with property management responsibilities.  

NREIG’s PMEO includes coverage for:  

  • Exposures on the premises due to property management activities not covered by premises liability.  
  • Errors and contract performance disputes.  
  • Tenant discrimination in violation of fair housing laws. 
  • Defense costs such as counsel, court fees, and judgements.