Real estate funds

Tailored industry coverage

 

What are Real estate funds?

A real estate fund is a private investment in real estate, typically multi-family, student, or senior housing, office buildings or retail space. Because the fund’s investments are concentrated in the real estate sector, these funds are subject to specific risks that differ from other private fund types.

Capacity

$5M maximum limit.

Coverage & Benefits

Primary coverage:

  • Tailored for private investment activities related to the real estate fund space, including the appointment of third party service providers.
  • Includes built-in coverage for inquires of insured persons, as well as coverage for crisis management expenses and extradition costs.
  • Additional limits are provided for independent directors. 

Secondary coverage available for:

  • Cyber/Privacy to protect against data breaches and theft of sensitive information,
  • Lender Liability, which covers claims related to lending activities,
  • Errors and omissions (E&O) coverage for property managers and developers,
  • Employment Practices Liability (EPL) to protect the company from lawsuits brought by employees,
  • Fiduciary, covers the liabilities of those responsible for managing employee benefit plans, and
  • Employed Lawyers for in-house attorneys. 
FAQs
  • Do you have the ability to offer cyber coverage?

    Cyber can be included on this policy as a separate coverage part.
     

  • I already buy D&O, why do I need to buy E&O?

    D&O coverage generally excludes claims brought by customers or regulators alleging the failure to provide professional services.  E&O is designed to provide that coverage.
     

  • Does your policy respond to an informal regulatory investigation?

    While informal investigations do not traditionally meet the definition of claim, our policy can provide defense coverage for insured persons to respond to informal regulatory investigations.
     

  • How does the policy respond when a legacy fund is wound down?

    So long as the policy is continuously maintained with us, coverage is for claims arising from wrongful acts while the fund was active.
     

  • Are GPs, Co-Investment Funds, AIVs and SPVs covered?

    Yes
     

  • Will my Real Estate Fund Liability policy cover my property management business?

    No, but coverage for property management services can be added to this policy on an additional coverage part.
     

  • This firm does not have a fund and instead invests through different LLCs. How does your policy address this?

    We treat the LLC investment vehicles as though they are their own single purpose fund and we have language to cover newly created LLCs or funds automatically during the policy period.

Related products

Package Real estate funds coverage with the following products: Cyber and Management Liability.

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Claims scenarios 

Not sure what risks our product covers? We’ve brought some scenarios to life.

Real estate funds

A real estate investor who owned a franchised location of a national hotel chain sold the property to another hotel operator outside of the chain. After the transaction closed, it was discovered that the seller had included the redemption of corporate rewards points in the revenue numbers, which resulted in the overstatement of revenues by nearly a million dollars. The seller admitted the mistake and paid a large settlement to correct the error.

Real estate funds

A real estate investor who owned a franchised location of a national hotel chain sold the property to another hotel operator outside of the chain. After the transaction closed, it was discovered that the seller had included the redemption of corporate rewards points in the revenue numbers, which resulted in the overstatement of revenues by nearly a million dollars. The seller admitted the mistake and paid a large settlement to correct the error.