{"id":1599,"date":"2021-04-05T19:26:27","date_gmt":"2021-04-05T19:26:27","guid":{"rendered":"http:\/\/www.americaninsurancealliance.com\/?page_id=1599"},"modified":"2026-05-12T10:00:35","modified_gmt":"2026-05-12T10:00:35","slug":"risk-management-2","status":"publish","type":"page","link":"http:\/\/www.americaninsurancealliance.com\/?page_id=1599","title":{"rendered":"Risk Management"},"content":{"rendered":"
\n
\n
\n
\n
<\/div>\n<\/div>\n
\n
\n
\n
\n

Risk Management<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
<\/div>\n
\n
\n
<\/div>\n
\n
\n
\"\"<\/div>\n<\/div>\n
\n
\n
\n

Tenant Discrimination Laws, Trends, and Landlord Recommendations:<\/strong> <\/strong>Are you a member of a legally protected class? To answer that question, ask yourself, do I have a gender? Do I have a religion? How about a sexual orientation? An age? A family status?<\/span><\/p>\n

<\/span>READ MORE<\/a> <\/span><\/p>\n<\/div>\n<\/div>\n

\n
\n
<\/div>\n<\/div>\n
\n
\n
<\/div>\n
\n
\n
\n
<\/div>\n<\/div>\n
\n
\n
<\/div>\n
\n
\n
\"\"<\/div>\n<\/div>\n
\n
\n
\n

Tenant Discrimination Laws, Trends, and Landlord Recommendations<\/span><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
\n

Are you a member of a legally protected class? To answer that question, ask yourself, do I have a gender? Do I have a religion? How about a sexual orientation? An age? A family status? A race? A pet I have a deep emotional connection with? If you answered yes to any of those questions, then, yes, you are a member of a legally protected class.  As my dad used to say, \u201cYou are unique and special. Just like everyone else.\u201d An expanding definition of \u201cdisability\u201d coupled with substantial increases in the operating budgets of government enforcement agencies are leading to record numbers of housing discrimination complaints against property managers and landlords.<\/span><\/p>\n

<\/span><\/p>\n

The Federal Fair Housing Act is intended to prohibit illegal housing discrimination against the buyer or renter of a property and promote residential integration. When the Fair Housing Act was first passed, it only prohibited discrimination based on race, color, religion, sex and national origin. A 1988 amendment to added disability and families with children under the age of 18 to the list of protected classes. In June of 2015, the Supreme Court held that the law also allows for claims involving situations that have a discriminatory effect, even if there is no discriminatory intent. Activities such as advertising only in a Hispanic targeted newspaper or only in a certain section of town have been found to violate the law. Housing discrimination law compliance is a bigger issue in the U.S. than most property managers and landlords understand it to be.<\/span><\/p>\n

<\/span><\/p>\n

\u201cThe Fair Housing Act\u201d and \u201cThe Americans with Disabilities Act\u201d have similar definitions of a disabled person: a person who has a physical or mental impairment that substantially limits one or more major life activities, or a person who has a history or record of such an impairment, or a person who is perceived by others as having an impairment. Visible disabilities, such as those of a wheelchair bound tenant or a blind tenant, are easier for property managers to acknowledge and accommodate.<\/span><\/p>\n

<\/span><\/p>\n

Lesser apparent or invisible disabilities are far more difficult to identify and accommodate. Yet, reasonable accommodation without question is required. For example, a military veteran suffering from Post-Traumatic Stress Disorder who needs the services of a Chow to reduce anxiety or a person who has seizures and relies on the services of a German Shepherd that can predict the onset of those seizures both suffer from invisible disabilities. Both tenants are legally allowed to keep their pets despite any property management rules prohibiting such animals. Because invisible disabilities are both more difficult to recognize and more likely to be fraudulently claimed by tenants, there is a greater likelihood property managers may initially deny such tenants reasonable accommodations. Such denials may cause more discrimination complaints.<\/span><\/p>\n

<\/span><\/p>\n

Worse yet for property managers, evolving ideas of what constitutes a disability are creating new problems. Recent court cases ruled that hoarding and the use of medical marijuana were considered disabilities. These disabilities create special problems for property managers because they pose additional safety hazards when tenants with these disabilities reside close to other tenants. For example, marijuana users produce toxic second hand smoke and hoarders pose a fire risk. While discrimination is still illegal in these situations, property managers may put in reasonable limitations and controls to address safety concerns. For example, someone who claims that their pit bull helps them manage anxiety may still be required to remove the dog from the premises if the dog attacks or attempts to attack another person.<\/span><\/p>\n

<\/span><\/p>\n

It brings added urgency to any property manager when they read about an increase in the operating budget for the agencies that are tasked with enforcing these laws and investigating these complaints. These agencies are searching hard for discrimination complaints. Enforcement of the Fair Housing Act is administered by the Office of Fair Housing and Equal Opportunity and overseen by HUD. Ninety five separate fair housing and nonprofit organizations whose mission is to find and eliminate housing discrimination were recently awarded $38.5 million from the government.<\/span><\/p>\n

<\/p>\n

These agencies\u2019 budgets are ultimately defined by how many complaints against landlords they find and help prosecute. Therefore, finding more violations is good for their business. So when they contact you as a property manager and claim they don\u2019t favor either side of a housing dispute, be wary. The best practice when dealing with these investigators is to be polite, succinct, and let them know you\u2019ll have someone in your organization reply in full. At that time, get help from a lawyer or other type of fair housing professional to help you properly respond.<\/span><\/p>\n

<\/p>\n

It\u2019s important that your property management team be well trained in Fair Housing and Discrimination laws. Periodically test your staff to see if they are in full compliance. Check to see that your sales and lease forms as well as your advertising comply with Fair Housing laws. Finally, as a failsafe measure, make sure that you have proper insurance in place (Tenant Discrimination or Employment Practices Liability Insurance with 3rd Party Coverage). Property managers and landlords are more predisposed to discrimination lawsuits than ever before.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n
<\/div>\n
\n
\n
\"\"<\/div>\n<\/div>\n
\n
\n
\n

Top 10 Mistakes Insuring a MHC:<\/strong> <\/strong>Failure to list\/insure all your improvements on your policy. Many simply don\u2019t include above ground utility infrastructure, signs, fences and smaller buildings. Undervaluing your property. Too often, people insure things based on its tax value or what the prior owner valued it at.<\/span><\/p>\n

<\/span>READ MORE<\/a> <\/span><\/p>\n<\/div>\n<\/div>\n

\n
\n
<\/div>\n<\/div>\n
\n
\n
<\/div>\n
\n
\n
\n
<\/div>\n<\/div>\n
\n
\n
<\/div>\n
\n
\n
\"\"<\/div>\n<\/div>\n
\n
\n
\n

Top 10 Mistakes Insuring a MHC<\/span><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
\n
    \n
  1. Failure to list\/insure all your improvements on your policy. Many simply don\u2019t include above ground utility infrastructure, signs, fences and smaller buildings.<\/span><\/li>\n
  2. Undervaluing your property. Too often, people insure things based on its tax value or what the prior owner valued it at. For most regular construction buildings, start at $70\/ft.<\/span><\/li>\n
  3. I won\u2019t insure y park owned homes because they aren\u2019t worth a lot. A $10K loss might not be catastrophic, but if you lose 10 homes at $10K each in a single event, that\u2019s too large of a loss to not seriously impair your long term investment.<\/span><\/li>\n
  4. Buying insurance from a non-specialty agent. They don\u2019t have the knowledge or insurance company contacts to get you the right coverage or a good premium.<\/span><\/li>\n
  5. Not buying loss of Business Income and extended loss of business income coverage. Both are critical for park owners.<\/span><\/li>\n
  6. Paying for the insurance of every contractor that works for you. If they don\u2019t have insurance, your insurance company will pay their claims. Make them prove coverage with an appropriate Certificate of Insurance.<\/span><\/li>\n
  7. Failure to include data breach and tenant discrimination coverage. These are large and growing loss drivers for park owners.<\/span><\/li>\n
  8. Calling an employee and independent contractor. What functions and how they perform them define who is an employee. A simple contract stating otherwise won\u2019t do it.<\/span><\/li>\n
  9. Not buying Worker\u2019s Comp when needed. Ands if you have employees you need workers compensation insurance. Employers are responsible for medical expenses and lost wages for up to life when employees are injured on the job.<\/span><\/li>\n
  10. When you sell mobile homes, not including this coverage on your policy. You need general liability insurance that covers the park, any home sales, and all associated operations.<\/span><\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
    \n
    <\/div>\n
    \n
    \n
    \"\"<\/div>\n<\/div>\n
    \n
    \n
    \n

    Stealth Auto Liability:<\/strong> <\/strong>Most of our manufactured home community and retail center operators don\u2019t own a corporate vehicle or drive their own vehicles as a revenue generating part of their business. Nevertheless, most still have some auto liability risk.<\/span><\/p>\n

    <\/span>READ MORE<\/a> <\/span><\/p>\n<\/div>\n<\/div>\n

    \n
    \n
    <\/div>\n<\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    \n
    <\/div>\n<\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    \"\"<\/div>\n<\/div>\n
    \n
    \n
    \n

    Stealth Auto Liability<\/span><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
    \n
    \n
    \n

    Most of our manufactured home community and retail center operators don\u2019t own a corporate vehicle or drive their own vehicles as a revenue generating part of their business. Nevertheless, most still have some auto liability risk. Examples include owners or employees using their own vehicles to go to the bank, pick-up supplies, take customers to see property, etc. Any accident involving either a company owned vehicle or a vehicle owned by another while being used on a company-related task will result in your company\u2019s involvement in any resulting accidents.<\/span><\/p>\n

    <\/span><\/p>\n

    You can manage this risk by doing the following things: First, limit who can drive on company business. You don\u2019t want every Lloyd and Harry driving all over town under your corporate banner. People love to sue business owners. Second, make sure you have either a corporate auto insurance policy or hired\/non-owned auto liability coverage on your general liability insurance policy.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

    \n
    <\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    \"\"<\/div>\n<\/div>\n
    \n
    \n
    \n

    Planning for an Emergency<\/strong>: <\/span>A recent report by a national small business council revealed that 80% of the small businesses significantly damaged by a major storm or other calamity that didn\u2019t have a disaster recovery plan failed within a year of the disaster. <\/span><\/p>\n

    Read More<\/a><\/p>\n<\/div>\n<\/div>\n

    \n
    \n
    <\/div>\n<\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    \n
    <\/div>\n<\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    <\/div>\n<\/div>\n
    \n
    \"\"<\/div>\n<\/div>\n
    \n
    <\/div>\n
    \n
    \n
    <\/div>\n
    \n
    \n
    \n
    \n

    Planning for an Emergency<\/span><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
    \n
    \n
    \n

    A recent report by a national small business council revealed that 80% of the small businesses significantly damaged by a major storm or other calamity that didn\u2019t have a disaster recovery plan failed within a year of the disaster. As for those that did have a disaster recovery plan, only 20% failed. Here are five simple steps to creating a viable disaster recovery plan:<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

    \n
    \n
    \n