By Jason Jones
SVP, Risk Management
Preventing Property Losses
Protecting investment properties involves more than just securing a solid insurance policy–it requires a proactive approach to minimizing risks that could result in costly losses. By addressing potential issues early, landlords and property managers can prevent disruptions and maintain a safe environment for tenants.
Fire Prevention
Fires are not only one of the most common losses, often a result of cooking mishaps, electrical issues, or arson, particularly in vacant properties. To mitigate fire risks, install working and unexpired smoke detectors and fire extinguishers in all properties, educate tenants about fire safety, and consider utilizing additional suppression tools. Vacant properties must be secured at all times to prevent unauthorized access.
Water Damage
Water-related losses, such as frozen pipes, can lead to extensive and costly property damage. Keep indoor temperatures above 55°F (higher in more northern locations), insulate exposed pipes, and encourage tenants to let faucets drip during freezing conditions. Leak sensors and automatic shutoff valves are relatively easy to install and provide early detection and intervention, minimizing damage.
Theft
Properties that are vacant or under renovation often attract thieves targeting appliances, tools, and materials. However, this does not mean that occupied properties are immune to burglary. To reduce the risk of theft, all properties, whether vacant or occupied, must be equipped with high-quality locks on all doors and windows.
Additional measures, such as motion-activated cameras and exterior lighting and alarm systems, can deter potential intruders. Keeping the grounds tidy can also discourage unwanted visitors by signaling that the property is actively maintained.
Reducing Liability Risks
Liability claims can result in substantial financial losses, but proactive measures can significantly reduce exposure.
Regular property inspections are essential for identifying hazards such as loose handrails or damaged steps that could lead to accidents. Addressing these issues promptly and maintaining detailed records of repairs, including photos, can help prevent incidents and provide critical evidence if a claim arises. Scheduled maintenance plans can ensure consistent inspections and timely repairs, protecting both tenants and the investment property.
While no property is entirely immune to risks, thoughtful planning and preventative measures can significantly reduce the likelihood and severity of losses. A well-maintained property also reflects responsible management, fostering long-term value and tenant satisfaction.
About NREIG:
NREIG is a national, independent insurance agency, offering the most comprehensive, and flexible industry-leading insurance program for residential real estate investment properties. Our team of advisors and specialists delivers unmatched service and streamlined insurance solutions for investors with single-family and small multifamily rentals, renovation projects, and vacant homes. Seamlessly make coverage changes as your portfolio fluctuates and pay only for the coverage you need each month.
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About the author:
Jason’s insurance career spans more than 20 years, with the bulk of his industry experience gained through his role as an adjuster handling property and liability claims. Throughout Jason’s time with NREIG, his various leadership positions have exposed him to almost every department, including service, claims, account review, underwriting, and risk management. As SVP of Risk Management, Jason guides NREIG teams in maintaining carrier relationships, foreseeing and managing potential risks, and aiding in becoming a market leader.
