Property management insurance

Introduction to Property Management insurance

Property management insurance is an insurance policy designed for property management companies or property owners associations. The purpose of this kind of insurance is to protect the various risks and responsibilities faced by property management entities in the process of managing and maintaining properties.

In Australia, according to the law, it is mandatory to purchase property management insurance. This means that for property management companies or owners' associations that manage townhouses, apartments, unit buildings, or duplex homes, they must have such insurance to meet legal requirements.

Protection provided by property management insurance

• Building insurance: Covers the risks of buildings and their structures due to damage, destruction, or disaster events (such as fire).
• Public property insurance: Protect public areas and shared facilities (such as lobby, swimming pool, gym) and their equipment, furniture, decoration and other items from loss or damage.
• Public liability insurance: Covers the liability of the owners' association or property management company for injury or property damage to third parties (visitors, tenants, tourists) in the shared area.
• Management liability insurance: Protect the legal responsibilities and claims that owners' associations or managers of property management companies may face in the course of performing their duties.
• Legal expense insurance: Covers litigation costs, lawyer fees and investigation costs incurred due to legal disputes.
• Employer's liability insurance: Protect compensation caused by employees' injuries or illnesses at work.

Areas not covered by property management insurance

• Problems caused by asbestos or asbestos-related materials.
• Problems caused by soil erosion or crustal movement.
• Loss or damage to the owner's personal property. Owners should purchase personal property insurance to protect their property.
• Loss or damage to the tenant's personal property. Tenants should purchase tenant insurance to protect their property.

Choose the right insurance policy

When purchasing property management insurance, it is recommended that you carefully read the insurance terms and conditions to ensure that you understand your specific insurance coverage. The specific scope and protection content of insurance may vary depending on the insurance company and the specific insurance plan.