Property Management Indemnification

[Casey LaValle]

Hi All, I am really hoping to see if anyone else has faced a similar situation and may be able to provide some guidance. I had a tenant that broke through a second story wooden deck railing at 2 am and fell to the street and had injuries last year. I turned the claim over to the insurance company and had not heard anything in 6 months. Today I received a letter in the mail in regards to a lawsuit against my property management company by the tenant. In the letter it references an indemnification clause in my agreement with the property management company that there is a cross claim against me for any legal fees and loss to the management company as a result of the lawsuit. I could go into details of the case but all I feel is necessary is that an excessive amount of force had to have been used to break the railing the way it did and the timing of the fall makes it very likely drinking was the cause. I have sent the documents to the insurance adjuster and will be contacting a lawyer. If anyone knows a good lawyer in Cleveland Ohio please let me know. Do you know if my homeowners will step in and represent me in this case as well? Any advice or suggestions would be much appreciated. Thanks in advance. Casey

[Achraf El Churafa]

My Understanding is the Home owner insurance does not cover claim if your Renting the property. You should have a Commercial Policy to cover. At least this is what my insurance broker told me when I was buying insurance for my Duplex.

[Casey LaValle]

I do have a policy that is for a tenanted property that is not owner occupied. I am not worried about the initial claim. I am worried about the lawsuit the management company is filing against me for any costs or losses they incur because they are also being sued.

[Jessica Zolotorofe]

Unfortunately, depending on the wording of the agreement, you may have to cover their costs. But was the railing in disrepair? Was the management company supposed to maintain it? Was there any negligence on their part in either enforcing rules or making repairs? Anything you can use as grounds to potentially void the indemnification provision?

[Casey LaValle]

Jessica Zolotorofe , not what I was hoping to hear.. Do you know if my insurance policy will step in and represent me on my behalf and cover the losses since the incident stems from an injury on the my property?

I just got the letter today and haven't explored other possibilities yet.

[Jessica Zolotorofe]

They should. They may not cover the indemnity liability though. All of this depends on the wording of your agreement and insurance policy. I'm sorry :(

[Jessica Zolotorofe]

Also, submit the claim to your insurance carrier right away. They could disclaim if they didn't receive formal notice within a certain time period after the incident. 

[Jason Bott]

@Casey LaValle I'd second @Jessica Zolotorofe comments.  At a minimum, your stating insurance policy is required to respond and represent you in the claim.

[Casey LaValle]

Jason Bott and Jessica Zolotorofe thank you both for your feedback. I sent the information to my insurance company and will see what they say. Depending on what they say, I will seek additional legal counsel. I will update as things progress. Thanks again.

[Jessica Zolotorofe]

Best of luck, Casey!

[Jennifer M.]

Originally posted by @Casey LaValle:

Jason Bott and Jessica Zolotorofe thank you both for your feedback. I sent the information to my insurance company and will see what they say. Depending on what they say, I will seek additional legal counsel. I will update as things progress. Thanks again.

Hi Casey....just curious what the end result was for you.  I hadn't read my PM agreement very closely (since it's just the standard state form), but I am sure there is a broad indemnification clause and now it has me concerned.  I hope things turned out in your favor!