Property Insurance for Landlords Part 2 – Your San Francisco Property Management Company is an Additional Insured

This is Part Two of a blog that includes information about required insurance for landlords and rental property owners. In the first blog, we discussed what types of coverage you need. Today, we are talking specifically about making sure your property management company is named as an additional insured on your policy. You don’t want to list your property manager as an additional interest – that doesn’t mean anything. The company needs to be included as an additional insured.

It’s necessary to do this because owning an apartment building is a risky business. People fall and hurt themselves and then they get a lawyer and they sue. They sue everybody, including the owner and the manager. If there is a lawsuit, you want a unified defense. It’s counterproductive to have my insurance company defending me against your insurance company. A unified front is far better for both of us and it’s better for your property.

At Gordon Property Management, we do have insurance of our own. Our policy covers any negligence on our part, or errors that the company makes. Most property management companies look to the property owner’s liability insurance policy as the first line of defense. Our management fees are not such that we can absolve you of liability and take on that risk. We cannot insure your building against fires or someone tripping and falling.

Property Insurance for Landlords Part 2Think about it the way you think about renting a car. You pay a price per day for the use of the car but this does not include insurance on the car. You either need to purchase insurance at an additional price from the rental agency or have your own insurance policy that will cover a rental car.

In addition to making sure your building has adequate coverage, you need to add your property management company as an additional insured. There are some companies that will not do this. Allstate and Amica are two that will not name your property manager as an additional insured. Liberty Mutual is also very difficult.

Having your property manager named as an additional insured is a standard request. All the property managers I know specify that their company must be named an additional insured. If your insurance company won’t do it, they are not serving your needs.

Please feel free to contact us at Gordon Property Management if you have any questions about the property insurance you need.

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