Habitational
Types of Habitational Accounts We Can Insure:
- Apartments
- Townhome Associations
- Investment Rental Properties
- Short Term Rentals
- Condo Associations
- Homeowners Associations
- Single Family Rental Homes
- Student Housing
- Builder’s Risk – Under construction or rehab
- Lessors Risk w/ or without habitional
- Assisted Living/Residential Care Homes
- And More…
General Liability Insurance for Habitational Property Owners
Whether you own a single rental home, a condominium complex, or a multi-unit apartment building, owning habitational property means you take on unique risks every day. Tenants, guests, vendors, and even passersby may be on or around your property at any time. If an accident happens, you as the property owner can be held legally responsible—sometimes for costs far greater than expected.
That’s where General Liability Insurance comes in.
Why It’s Important
General Liability Insurance helps protect property owners from claims of bodily injury, property damage, and personal injury that occur on or around their premises. These types of claims can quickly become costly, and without proper coverage, the financial burden falls directly on you.
Examples of Covered Risks
- A tenant’s guest trips and falls on uneven stairs, requiring medical treatment.
- A delivery driver slips on ice in the parking lot and files a lawsuit.
- Property maintenance accidentally causes water damage to a neighboring unit.
- A tenant claims negligence after being injured in a common area.
What General Liability Insurance Covers
- Medical expenses for injured third parties
- Repair or replacement costs for damaged property belonging to others
- Legal defense costs, court fees, and settlements/judgments
- Certain personal injury claims, such as wrongful eviction or libel
Peace of Mind for Property Owners
For habitational property owners, general liability insurance is more than a safety net—it’s essential risk management. It ensures you can continue operating your property with confidence, knowing you’re protected against unforeseen accidents and legal disputes.
Directors & Officers Liability Insurance for Townhouse & Condo Association Board Members
Serving on the board of a townhouse or condominium association comes with important responsibilities—and potential personal liability. Board members are tasked with making financial, operational, and community decisions that affect all residents. Even when acting in good faith, those decisions can be challenged by homeowners, vendors, or regulatory agencies.
Directors & Officers (D&O) Liability Insurance protects board members against claims arising from their management decisions. Without this coverage, individual board members could be personally responsible for defense costs, settlements, or judgments.
Common Examples of D&O Claims:
- Disputes over enforcement of community rules or bylaws
- Allegations of mismanagement of association funds or improper budgeting
- Claims of discrimination in housing decisions or rule enforcement
- Challenges to decisions about property maintenance or vendor contracts
Why It Matters
Homeowner associations and condo boards often assume their General Liability policy will cover them—but those policies typically only respond to bodily injury or property damage claims. They do not protect against claims tied to governance, decision-making, or financial management. That’s where D&O insurance fills the gap.
By carrying D&O Liability Insurance, townhouse and condo association board members gain peace of mind knowing they have protection against costly legal actions, allowing them to focus on serving their communities without the constant fear of personal financial loss.
Why Apartment and Townhome Association Owners Should Consider Higher Liability Limits or an Umbrella Policy
Apartment complexes and townhome associations face exposures that go far beyond those of a typical single-family home. With multiple units, common areas, and frequent foot traffic from residents, guests, and vendors, the potential for serious accidents and costly claims is significantly higher.
While a Commercial General Liability (CGL) policy provides essential protection against bodily injury and property damage claims, its limits may not always be enough to cover large or catastrophic losses. That’s why many association owners and boards choose to carry higher liability limits or purchase a Commercial Umbrella Liability policy for added protection.
Key Reasons to Consider Higher Limits or an Umbrella Policy
- Higher Risk of Severe Injury Claims
- Common areas such as pools, fitness centers, playgrounds, and parking lots increase the chances of accidents.
- A single slip-and-fall, drowning, or fire incident could result in lawsuits seeking damages well above a standard liability policy’s limits.
- Property Size and Population Density
- The more residents and visitors on-site, the greater the exposure to potential claims.
- Multi-family dwellings inherently carry a higher frequency of liability incidents compared to single-family properties.
- Legal Defense Costs
- Even if a claim is unfounded, legal defense fees can quickly reach six figures. An umbrella policy helps ensure adequate coverage for both settlements and defense expenses.
- Board Member Protection
- Associations are often sued as entities, which can include directors and officers. Having higher limits helps safeguard association finances, reserve funds, and board members from catastrophic financial strain.
- Contractual & Lender Requirements
- Lenders, investors, or municipal entities may require higher liability limits as a condition of financing or permitting.
- Peace of Mind
- Lawsuits are unpredictable, and jury awards for bodily injury cases continue to rise. Higher limits provide a cushion against unforeseen, high-dollar claims.
How an Umbrella Policy Helps
A Commercial Umbrella Liability policy provides an extra layer of coverage above your existing general liability, auto liability, and sometimes employer’s liability policies. For a relatively modest premium, it extends your protection by millions of dollars, making it one of the most cost-effective ways to safeguard the association’s assets and financial health.
Bottom Line: For apartment owners and townhome associations, the question isn’t whether a claim could exceed your general liability limits—it’s whether you can afford to take that risk. Higher liability limits or an umbrella policy provide critical protection against catastrophic claims, ensuring the long-term stability of the property and peace of mind for the owners and board members.