When you own a hotel, dormitory, or multifamily unit, you are exposed to risks that other businesses are not. In order to operate safely, you will need to have some form of habitational exposure insurance. To make an informed decision about your coverage, you will need to know what this coverage is and how it is useful.
What Is Habitational Exposure?
Habitational exposure is the exposure to chemicals and other environmental factors that can harm someone living in your facility or complex. It can sometimes be a risk associated with water and other damages.
What Does Habitational Insurance Cover?
This type of insurance covers a wide variety of conditions and situations. It covers:
- Air quality issues
- Mold
- Illness related to accidental fire
- Accidental contamination of food
It covers any potential problems that arise when you have more than one rental unit in a building. It can also cover unknown exposure to lead and other chemicals.
What Doesn’t Habitational Insurance Cover?
This insurance does not cover negligence on the part of the property owner, landlord, or property management company. Willful negligence is rarely covered. It also will not cover accidents or problems caused by the tenant’s negligence, such as not changing air conditioner filters, not reporting floods or pipe breaks, or mold due to improper storage of food.
Habitational risk coverage is a necessary part of doing business as a hotel, dormitory, or multifamily unit. Without it, you could be open to both environmental protection issues and illness-related lawsuits.