Hello fellow investors....
Is it standard practice to have property management companies asked to be put as additional insured in liability and property insurance policies?
Yes, it is very common practice to list your property management as additional insured. This should not cost you anything additional as the property owner. It will just ensure that you and the pm company are legally on the same "team" in the event of claim by the tenant.
@Paoola Sefair it is a common request, but most insurance companies won't do that, but they will do "additional interest "
Agree with everyone. The reason is, although rare for a lawsuit to happen (twice for us in 10 years), most of the time, that lawsuit is going to be frivolous. A large PM does not want to be on the hook for things outside of their control. For instance, we had a lawsuit where the next door neighbor twisted her ankle on a small divot in a yard that we manage. That person sued the owner and myself. Lawyers will sue anyone connected to the property that they can.
Thank you for all the guidance!