TOP INSURANCE CONCEPTS FOR SITE MANAGERS

1.Liability Insurance- (also known as Casualty Insurance): Coverage that offers protection against claims that allege that a property owner’s negligence or inappropriate action resulted in a bodily injury (e.g., resident slips and fall on wet surface and is injured) or property damage to another party (e.g., sprinkler system in hallway turned to suddenly and ruined a resident’s couch)

2.Property Insurance: Includes coverage for accidental, direct physical loss to the property of the insured from any event that is not specifically excluded or limited (e.g. fire)

3.Co-Insurance: Requires the insured to maintain insurance at  least equal to a populated percentage of the replacement cost of the property in order to

4.Replacement Cost Coverage: Lost limit for which the owner sets the value and the insurance company agrees that the value is correct. Note that the market value may not equal the replacement cost of the property.

5.Actual Cash Value: the value for which a property could be sold, which is always less than the replacement cost. Often used by insurance companies to determine the amount to be paid in the event of loss.

6.Use of Premise Clause: Ensures use is for residential purposes only, and not, for example, a non-licensed childcare situation.

7.Renters’ Insurance: The contents of residents’ apartments are not covered under the owners’ policies for the building, so residents are responsible for insuring their personal possessions. The lease should also include a recommendation to obtain renters’ insurance, and residents should initial that clause.