Habitational Insurance Explained

Habitational Insurance Explained

Habitational Insurance

Owners of habitational properties, including apartment buildings, hotels, motels and student dormitories, face a special set of liabilities characterized by the owner-tenant relationship. Proprietors are not only responsible for the buildings, units and the immediate surroundings, but also for the safety of the renters, customers, and other third parties who visit their properties. A habitational policy can protect property owners from the many risks they face.

What Is Covered?

Habitational insurance is special in that it can be customized to the needs of the policyholder. Different types of policies that would normally be purchased separately can be bundled together. Typically, this insurance provides against:

  • Property damage caused by wind, fire, storms, vandalism, cyber attacks, and theft
  • Costs of environmental clean-up resulting from incidents of pollution
  • Mechanical failure of equipment
  • Loss of income
  • Physical injuries occurring on the property

In addition to these, it is wise for owners that employ staff at their properties to consider acquiring three further types of policies: directors and officers, workers’ compensation and employee practices liability.

Deciding which types of coverage are necessary can be complicated, especially in relation to habitational properties. Nevertheless, property ownership comes with many risks. Investing in insurance provides essential protection against the significant losses that can be incurred by physical damage to units and buildings, as well as by litigation.