Is it common for Insurance company to ask for local PM

[Jane A.]

I moved out of state and continue to manage most of my rentals myself with help of reliable contractors.   My Insurance company demands to hire PM company or they would cancel the insurance. What insurance company will be better for out of state landlord?  I do not want to be under the pressure of this demand.  

[Jason Bott]

Originally posted by @Jane A.:

I moved out of state and continue to manage most of my rentals myself with help of reliable contractors.   My Insurance company demands to hire PM company or they would cancel the insurance. What insurance company will be better for out of state landlord?  I do not want to be under the pressure of this demand.  

 Jane, the standard requirement for the insurance companies is to have the owner or a PM within 75 miles of the rental.  The question rarely gets asked of clients because the underwriter can just look at the mailing address and the rental address.

I would state that your contractor is representing you in a PM capacity.  It doesn't matter that he is not doing ALL of the standard duties of a PM.  Many of my out of state landlords have this exact set up.

If you are good with it, resubmit to your agent with your contractors name as the PM.  That should fix the issue.