The Most Preventable Property Losses in 2020

The Most Preventable Property Losses for 2020

As property owners, some losses are just unavoidable. However, to our good fortune, there are many losses we take as property owners that can be prevented. Due to our knowledge and experience, we’ve been able to anticipate the different kinds of losses you might take this year and hopefully, with our help, you can avoid them. Here are the five most common property losses, and how to avoid them.

          1. Tenant Damage

Picture the perfect tenant. Now, with that image in mind, have you during your career as a property owner rented out a property to the tenant you just imagined? Most of the claims that involve tenant damage are typically an accidental cooking fire, or malicious destruction of property. By placing the best possible tenant in your rental property is one of the easiest ways to save future heart ache. 

So how do you place the best possible tenant? Wouldn’t you want to rent it out to the first person who waves a fist full of cash in your face. However, be diligent. Every contract with a potential renter can tell you a lot about their character and how they may behave while living on your property. Background checks and credit checks are standard when verifying any information your applicant submits. It’s typical to also have a property managers performing this task. Be sure to have a firm grasp on their selection process if this be the case. 

          2. Fire/Water Damage

Fire and water damage go hand in hand. They are the most common losses taken to a property, and perhaps the most damaging. The United States Fire Administration reported the average house fire will cause approximately $40,000 in damages. $40,000 may sound like a lot, but it only gets worse. The average replacement cost for an investment property is around $80,000-$150,000 depending on the property. 

Water damage is a different story. Damage is most easily caused by a burst pipe in the winter months. The trick is to discover the leak as quickly as possible. If the water continues to run for days on end, the losses can be just as costly as fire damage.

Some of the best ways to stay fire free:

          Occupied Properties:

• Do regular check ups on your smoke detectors
• Keep fire extinguishers in the home, and ensure your tenants know how to use them properly
• Install fire suppression products: StoveTop FireStop

          Vacant Properties:

• Layer your home security.
• Make the property look as lived in as possible; abandoned homes invite theft. 
• Recruit the neighbors to be on the lookout for unfamiliar faces.

Preventing a burst pipe:

          Occupied Properties:

• Insulate pipes on exterior walls, crawl spaces, and attics
• Open cabinet doors to allow heat to circulate
• Let warm water drip overnight, especially for faucets on outside walls.

          Vacant Properties:

• Set the thermostat to no lower that 55 Fahrenheit (may need to be higher for properties located up north)
• Ask a property manager/ neighbor to check the house during cold fronts to ensure it is still warm
• Shut off the water at the street and drain the plumbing system. 

          3. Liability

Property losses and injuries are just a few of the most common types of liability losses.Occasionally, one of these might follow a pattern of eviction followed by lawsuit. Many legitimate injuries have been reported. They range from broken bones, to paralysis, even death. Won’t insurance cover these losses? Maybe. While insurance is an important part of your risk mitigation plan, it typically doesn’t cover every single loss out there. Be sure to check with your agent if your plan will cover these losses. 

How to avoid a lawsuit:

• Implement a scheduled maintenance plan.  
• If anything is discovered during the maintenance check, repair it as soon as possible. 
• Respond promptly to any tenant complaints about unsafe conditions.

          4. Trees

Curb appeal can be everything when trying to upgrade your property, and trees make an excellent addition. However, be wary. If the proper steps aren’t taken to correctly maintain your yard, that amazing tree that brought so much curb appeal can bring some serious damage to your property. 

How to maintain that curb appeal:

• Make sure you are checking your trees regularly
• Any visual signs of dead or falling branches, deep cracks or missing bark, go get a licensed professional to take appropriate action. 

          5. Theft

Unfortunately this is the world we live in where theft is among one of the most common types of losses we see in properties. Properties under renovation or vacant properties tend to be the easiest types of properties to break into. Both have relatively low traffic, and are typically full of valuable appliances. There are steps you can take to ensure this happens as little as possible

• Make the house look as lived in as possible.
• Secure your property
• Consider reinforcing your exterior door with Door Armor. 
• Ask your neighbors to keep an eye out for unfamiliar faces
• Keep the yard trimmed and clean-this provides thieves a place to hide
• Keep your exterior well lit
• When needed, board up the property
• Use an alarm system

These are the most common losses we see in properties, and all have actions that can be taken to prevent them. With a little planning and effort this year may just be your best year yet!

By: Mike Pugliese