As a landlord, you no doubt have a lot on your mind. You have to keep your properties full of tenants, not to mention in good, livable condition. You might have employees to manage. Depending on the size of the property, this can include housekeeping staff, rental staff, maintenance workers, and more. The last thing that you need is to deal with the headache of a lawsuit brought against your company by your tenants, who claim that they were discriminated against. Thankfully, you probably have an insurance policy in place to help with this situation: tenant discrimination insurance.
What is Tenant Discrimination Insurance?
While you need to have a number of insurance policies in place in order to protect your property and your livelihood, such as property insurance, general liability insurance, worker’s compensation, and so on, there’s another type of policy that’s often overlooked, but no less important: tenant discrimination insurance.
This type of insurance covers exactly as the name implies: lawsuits brought about by tenants who say that they were discriminated against. Tenant discrimination insurance is a type of liability insurance. If you are sued by your tenants due to discriminatory actions, then your policy may cover the legal costs and the settlement costs brought about by the lawsuit.
How Does Tenant Discrimination Insurance Work?
In order to illustrate how this type of insurance works, here’s an example scenario:
You own and operate an apartment building. Ten of your tenants came forward and said that your property manager and leasing agents discriminated against them when they asked for repairs on their apartments. They decide to sue you and your company for damages and have hired the same lawyer who put together the suit. You decide to settle in order to end the lawsuit and work out a settlement for each tenant.
Usually, you’d have to pay for these settlements out of your own pocket. The legal fees from their attorney, as well as yours, would also come out of your bank account as well. However, since you have tenant discrimination insurance, you simply have to contact your insurance agent and file a claim. The insurance policy will more than likely cover all of these attorney fees and settlement costs.
Who Qualifies for a Tenant Discrimination Insurance Policy?
Going beyond the standard landlord of an apartment building situation, there are many other people, businesses, and organizations that could benefit from a tenant discrimination policy. They include homeowner’s associations for both condo units and housing developments, as well as condominium owners’ associations. Both run the risk of having an employee of the HOA or COA potentially discriminating against a tenant or homeowner. Others include companies that own and run commercial properties, such as business parks and shopping centers.
Have Questions? Contact Charlotte Insurance
Want to learn more about tenant discrimination insurance? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.