CLASS is pleased to have guest blogger Chris Player, CIC, of Stevens Hale and Associates  provide some much needed insight into different areas of risk exposure in multifamily communities.   Thanks for sharing Chris!

“Apartment executives face a number of day to day challenges.  From real estate market conditions to HR issues to tenant safety concerns; many executives rely on Property and Casualty Insurance products to reduce the exposure these challenges present.  Here are 3 important risk exposures facing apartment owners.

  • Data Breach and Network Security Insurance:  Often referred to as Cyber Liability, protects an organization from a failure to prevent unauthorized access to the company’s network/server.  Many personal information records are kept for tenants, which may include social security numbers.  Whether an outside hacker or an angry employee looking to make a few bucks; the cost to restore one’s identity is very costly (see HIPAA and HITECH Act).
  • Tenant Discrimination: A handicap tenant signed a lease in a second story unit.  The tenant requested a first floor unit once available but the apartment management did not follow up on the request.  The tenant suit claimed the apartment community failed to accommodate his handicap.  This suit exceeded $10,000 in legal fees to the property.  Many insurance carriers offer Tenant Discrimination coverage for Fair Housing violations.
  • Employment Practices Liability:  A prime example of this exposure is when apartment leasing agents show a unit to a prospective tenant.  The prospect makes an unwanted advance to the employee which results in a sexual harassment lawsuit to his/her employer, the apartment owner.

These areas are often overlooked when identifying areas of risk on a multifamily property.  With your onsite staff reliant on the internet, and with increasing tenant discrimination regulation, it is very important to explore some tools to mitigate this risk.”

If you have any question about Property and Casualty policies, please email Chris at