Do I need to include my property manager on my landlord’s insurance?
As a landlord it’s important to make sure you carry sufficient insurance, especially if you have a property manager who carries out your landlord responsibilities on your behalf.
Property managers bear the same risks: they collect rent, respond to tenant complaints, deal with maintenance and repairs, as well as pursue evictions.
If you use a property management company, you probably fit one or more of the descriptions below, and would therefore find it to your best interest, to include your property manager on your landlord's insurance.
- you have multiple rental units
- you don't have time or interest in managing the property yourself
- you live away far from your property
- your property is part of an affordable housing program
If your property manager makes a mistake and is sued by a tenant, their liability insurance will not cover any damages. Their liability insurance only offers protection from claims that are a result of the services provided by the Property Manager. It does not offer any protection against issues with the home itself.
This leaves property managers open to claims and lawsuits that can come from the property, including:
- Someone getting injured on the property
- Theft or burglary
- Fire damage
- Water damage
Because coverage is not provided to the Property Manager through their Errors and Omissions Insurance or General Liability Insurance, many property managers require the landlord to add them to their insurance policy as an additional insured. This extends the landlord’s coverage to the property manager.
Adding property managers to a landlord policy
Talk to your insurance agent to see how they can most effectively and affordably add your property manager to you insurance. Doing so extends coverage to your property managers for potential lawsuits and claims that they wouldn’t otherwise be protected for.
It’s very common for a property manager to require you as a landlord to add them as an additional insured. Most Rental Dwelling Policies add your property manager at no additional cost. Property managers with more knowledge and experience will often ask to be added as they understand the risk and liability that comes with their job.
Call your agent today to put the right landlord policy in place. (Toll free: 844-837-2869)