Adding Property Management Company To Insurance

[Kyle Johnson]

I was told all of a sudden I had to add my PM to my insurance. My PM is under new management. After doing some research online all the articles that are for adding your PM to your insurance are written by other PM companies. I wanted to get an owner's perspective about adding your PM as an Additional Insured.

What's the owner's benefit in doing this? From what I can tell you are just saving the PM company headaches and helping them out in case anything goes wrong.

Thoughts? 

[Ford Bennett]

Hi Kyle!

Good question, I'm a property manager so I'd like to give my perspective. Adding your PM as an additional insured allows them to file claims on your behalf, it also protects your PM in case a tenant brings a suit against the PM (they usually file a suit against the owner and the PM) and your management agreement likely limits the PM's monetary liability to a certain amount, in which case if that claim exceeds that amount they could try to come after you for the overage (if they do business like that, some might not). Hope that helps!