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Why It’s Essential to Add Your Property Manager as “Additional Insured” on Your Insurance Policy

As a leading property management company, our top priority is to ensure that your property is well-managed while minimizing risks and liabilities for both you and us. A key aspect of this risk management strategy involves being added as “additional insured” on your insurance policy. Here’s why this is vital:

Unified Legal Protection:

Once we enter a management agreement, both of us can potentially face lawsuits related to the property. As “additional insured,” we can provide a unified defense in case of legal issues, significantly reducing legal expenses and complications for both parties​​​​​​.

Handling Insurance Claims:

Being listed as “additional insured” allows us to effectively handle any insurance claims on your behalf, especially important if you prefer a hands-off approach or reside out of the country​​.

Reduced Risks and Liabilities:

Our role as your property manager involves taking on numerous responsibilities and risks, such as tenant screening, maintenance requests, and dealing with complaints. While we carry our own professional liability insurance, this does not extend to issues related to the property itself, leaving us vulnerable to certain claims. Adding us as “additional insured” extends your coverage to us, mitigating these risks​​​​​​​​.


Most insurance providers are willing to add us as additional insured upon request, often at no extra cost. This arrangement is seen by many insurance carriers as a reduction of risk, sometimes leading to discounts on your policy​​​​.

Standard Industry Practice:

This practice is not only common in commercial rentals but is also becoming increasingly prevalent in residential rentals. It represents a proactive step in safeguarding all involved parties​​.

Differentiating from “Additional Interest”:

It’s crucial to understand that “additional insured” and “additional interest” are not the same. The former extends coverage to us, while the latter only involves notification about policy changes​​​​.

We understand that this might be a new concept for many property owners. However, our experience and industry standards show that this step is critical for a successful and risk-mitigated property management partnership. We’re here to discuss any concerns you might have and to assist in making this process as smooth as possible.

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