When it comes to real estate businesses, working with members of the public and different properties leaves you open to problems arising. It’s no secret that this particular field can bring its fair share of challenges.
That’s why it’s important to have the appropriate insurance in place, to cover you in case of unforeseen circumstances.
In this article, we explore the different types of real estate insurance and what benefits they each have.
What is real estate insurance?
There are several types of real estate insurance that fall under this large umbrella term. These are typically divided into two categories: protective cover and liability cover.
There are many different options within this sector, with policies that specifically apply to property development, construction projects, and managing and letting agents. You’ll need to be sure you are selecting the most appropriate one.
Property development
Property developer insurance covers any type of construction work that you’re planning to complete on any given property. While your contractors may have their own cover in place for them as individuals, it’s important that you as their employer also have the relevant insurance as an extra safety net to cover all bases.
Property developer insurance should cover workplace accident claims, any accidental damage inflicted on your property or its surroundings, and public liability claims.
Construction project
Construction project insurance is important for anyone who will be employing contractors such as builders, electricians, plumbers and joiners to work on a building construction site.
It can be used on a number of projects on different scales for both residential and commercial buildings. This can include various insurance policies such as:
- Public liability insurance – to protect you from liability claims against damaged public property
- Product liability insurance – to protect you against claims that may arise due to faulty or malfunctioning products you supply
- Employers’ liability insurance – to protect you against employee claims for workplace injuries or illness
Managing agent
There are several risks that being a managing agent makes you vulnerable to. When dealing with properties and tenants within them on a daily basis, you can be met with all kinds of challenges.
Your managing agent insurance should cover the likes of accidental or malicious damage to your properties, illegal drug use within properties, the eviction of squatters, trace and access cover, and property owners’ liability.