My PM says he's "handling" my liability and not to worry

[Brian Kantor]

Hey there. I am in the process of closing on my first rental property, a SFH in Detroit. I ultimately found the property through my Property Manager, who had another client that was looking to sell it.

When I asked about liability insurance, he said that he gets a volume discount through NREIG (which I have read mixed reviews on in BP). He sent over a generic NREIG packet PDF about the policy and said the cost would be about $60/month.

Regardless, when I asked for paperwork and forms for me to evaluate and sign, he said "No paperwork; no forms. I will get you policy on day of closing."

• Is this something that I should be concerned about? Is this typical? Do Property Managers often handle the Liability Insurance for their clients in similar fashion?

Ultimately, I plan on using my own insurance broker, but he is having issues getting the paperwork filed efficiently given the pandemic and riots. My guy asked to see the paperwork from my PM to evaluate and said that an estimate is nothing unless it's formal.

• If I am likely (or even just have the option available) to switch providers to my broker's vendor at some point soon, does it even matter?

Backstory on my PM:  I interviewed about 12 PMs in Detroit before picking this guy. His company has about 1500 doors in the area. My Agent independently recommended him as well and vouches for him. 

If he is marking up the cost from NREIG, and that's why he is handling, it doesnt really matter to me, as I dont mind him making money. This just seems strange/shady to me.

Am I being over worried?

[Aaron K.]

@Brian Kantor $60 per month for just liability is an absolute ton of premium, you are being ripped off if this is for just liability insurance, and you still need a landlord policy elsewhere.  If it is for a landlord policy that is less egregious but I'd for sure do my own shopping around, I have yet to find a property manager who can manage doing basic math correctly 100% of the time, I sure as hell am not going to trust them to find me the best deal on insurance, when there is no incentive for them to do so.