Many people have never heard of property preservation insurance, but it is a vital resource for homeowners and communities. If you’re wondering whether this type of insurance is right for you, here are five things you should know.
Property Preservation Is a Safeguard
The purpose of property preservation insurance is to protect the values of surrounding homes. It does this by covering certain risks that occur when banks hire professionals to preserve bank-owned properties. As foreclosures rise, banks have greater responsibility to keep the properties they own maintained and in good working order.
Who Preserves Properties
Generally, there are two types of professionals that may be asked to preserve properties: general contractors and property management personnel or companies. In the former case, a general contractor faces certain risks when performing major repair work on bank-owned properties. Property preservation insurance covers those risks.
In the case of property management companies, the property manager takes on the minimal risk because he or she is not the one doing the repairs. However, he or she does hire the contractors and/or other personnel to perform the repairs and/or maintenance. The property manager usually only requires a professional liability or E&O insurance policy. If you don’t know what type of policy you should get from Axis Insurance Services, simply call and ask. It is important that you select the right policy so that your risks are sufficiently covered.