DWELLINGS
Category: Real Estate and Rental Property

SIC CODE: 6514 Dwelling Operators (excluding apartments) 

NAICS CODE: 531110 Lessors of Residential Buildings and Dwellings

531311 Residential Property Managers

Suggested ISO General Liability Code: 63010, 63011, 63012, 63013

Suggested Workers Compensation Code: 9012, 9015

Description of operations: Dwellings are residential structures built to provide living accommodations for one individual or family through a rental agreement called a lease. The dwelling premises may include outbuildings, such as a storage shed or garage.

Property exposures are light. Ignition sources are from the electrical wiring, heating, air conditioning, and cooking systems. If the dwelling was converted from a prior occupancy, it should meet current residential building codes. There should be hard-wired smoke/fire alarms. Items provided by the building owner, such as kitchen or laundry appliances, may be stolen by tenants or outsiders.

Crime exposure is generally limited to employee dishonesty. Background checks should be conducted on all employees. Money and securities exposure may be a concern, particularly if there are multiple dwelling units and payment is in cash. Payments by mail and by check are the preferred methods for collecting rents. Monetary transactions must be controlled through the use of receipts and regular monitoring. Deposits must be made on a regular basis, with appropriate security provided during collections.

Inland marine exposure may include accounts receivables for rents due, computers, and valuable papers and records for lease, mortgage, and tenant information. There may be contractors’ equipment for maintenance, repairs, and lawn care. Duplicates of all data should be kept off premises for easy replication in the event of a loss.

Premises liability exposure is limited due to the low number of tenants at each dwelling unit. All dwellings should meet all life safety codes and be in compliance with codes on smoke and fire detection, fire extinguishers, and carbon monoxide detectors. Lead exposure, particularly on windowsills, must be considered if the dwelling was built prior to 1980. To prevent slips, trips, or falls, the dwelling must be well maintained with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well lighted, marked, and in good repair. Sidewalks and driveways should be free from defects and cleared of ice and snow in inclement weather. The landlord must provide a secure dwelling to tenants. Locks should be changed when a new tenant moves into a unit. There should be a maintenance activity log to document the owner's response to tenants’ needs. Personal injury losses may occur due to alleged wrongful eviction, invasion of privacy, or discrimination. Clear guidelines for tenant acceptability are important.

Automobile exposure is generally limited to hired non-owned for employees running errands. If there are owned vehicles, such as those used to service dwellings, any driver should have a valid driver’s license and acceptable MVR. Vehicles must be maintained and records kept in a central location.

Workers compensation exposures are normally service, janitorial, or maintenance-related. Back pain, hernias, sprains, and strains from lifting and working from awkward positions are common. Skin and lung irritation can result from working with cleaning chemicals and paint. Interaction with tenants can be difficult. Employees should be trained to deal with difficult situations. Animals owned by tenants can bite or kick workers.

Minimum recommended coverage:

Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivables, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonownership Auto, Workers Compensation

Other coverages to consider:

Earthquake, Flood, Computer Fraud, Contractors’ Equipment, Cyberliability, Employment-related Practices, Business Automobile Liability and Physical Damage, Stop Gap Liability