Liability Insurance for Property Manager

[Jessica H.]

Hi all,

I'm reviewing property manager bids, and in a couple of contracts, I've found the following clause:

Is this common practice? I was surprised to see this. I would have thought PMs would carry their own insurances. I look forward to your feedback. Thank you!

Jessica

[Kim Meredith Hampton]

Jessica,
It is very common. Some insurance companies will not do this, but will add them as “additional interest “ in lieu of additional insured. This helps the management company know if and when you were to not pay your insurance premiums. Personally, I do not manage properties where owners don’t have insurance