At its simplest, property preservation is simply what its name suggests, keeping buildings from disintegrating into health hazards or eyesores; the need for specific property preservation insurance for your business will depend on a few factors.
Determining your property preservation insurance needs requires asking about your usual or expected practices. Even if you don’t offer a particular service at this point in your business, if it’s a future prospect or something you’d like to eventually do, having property preservation insurance that covers you for that pursuit could be the help you need in getting those jobs.
Here are some basic practices that an insurance professional may ask about, to determine what type of property preservation business you have, or would like to have…
- Lock changes. Securing properties is not always a feature of property preservation. Getting adequate coverage in your property preservation insurance policy means understanding all of your exposures.
- Winterization. In certain climates, vacant properties need special attention when temperatures drop. If a point is missed, damages could arise–you want to be sure your property preservation insurance addresses all your practices and covers your liabilities.
- Debris removal. This could be as simple as removing property left behind by tenants, or disposing of materials after a rehab or renovation. Whatever the circumstances, the agent managing your property preservation insurance should be informed of the type of debris removal you do.
- REO (Real Estate Owned) Maintenance. Whether you own a small operation that contracts through a larger property preservation organization, or you are that larger entity that specializes in handling foreclosed properties, your property preservation insurance will likely need to meet certain requirements. Specifics from all parties involved are necessary, as well as full disclosure of your operations to your insurance professional.
Engaging in property preservation can be a lucrative business opportunity, and having the correct type and amount of property preservation insurance can be one of the deciding factors in your success. Transparency about current practices and future goals will help ensure that your property preservation insurance policy covers your risks and sets you up as a professional worthy of consideration for contracts.
Call us at 1-877-907-5267 to speak with an insurance professional who can guide you to the right coverages for your property preservation insurance needs.