Most property management companies require that they are listed as an additional insured on the owner’s policy. When a Property Manager is hired, they perform a variety of different services on behalf of the Owner. In general, the Property Manager does not have a financial interest in the home as they are not part Owner. However, they do take on the risk and liability as if they were a Homeowner. Assuming the Property Manager does carry E&O Insurance and General Liability insurance, this only offers protection from claims that are a result of the services provided by the Property Manager. It does not offer any protection against matters concerning the home itself.
So, in essence, the Property Manager assumes all the liabilities of a Homeowner, but their insurance policies do not offer the same type of protection as a Landlord insurance policy. This leaves them vulnerable to claims and lawsuits arising from the property itself. Some examples of where the Property Manager would not be covered by their insurance policy include someone injuring themselves at the property, burglary, fire, water leaks, etc.
A typical Landlord insurance policy will protect the Homeowner against claims arising from these examples, however coverage is not provided to the Property Manager through their E&O Insurance or General Liability Insurance. To solve this problem, many Property Managers now require the Landlord to add the Property Manager to their insurance policy as an additional insured which then extends this coverage to the Property Manager. Below are recommended Insurance Agencies & Companies that provide insurance for investment properties:
Angelica Padilla
Liberty Mutual
Angelica.padilla@libertymutual.com
617-461-2949
www.libertymutual.com/agent/angelicapadilla
Marie V. Guerrier, MSM, CIC
Marsh McLennan
Vice President
Marsh | Account Executive
99 High Street, Boston, MA 02110, USA
Office +1 617-385-0414
Mobile +1 617-697-6438
Fax +1 617-385-0344
Marie.V.Guerrier@marsh.com
