Is it common for Insurance company to ask for local PM

Investor · Shawnee Mission, KS · Member since 2015 · 423 posts · 114 votes

I moved out of state and continue to manage most of my rentals myself with help of reliable contractors. My Insurance company demands to hire PM company or they would cancel the insurance. What insurance company will be better for out of state landlord? I do not want to be under the pressure of this demand.

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Jason BottPro Member

Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes

Originally posted by @Jane A.:

Jane, the standard requirement for the insurance companies is to have the owner or a PM within 75 miles of the rental. The question rarely gets asked of clients because the underwriter can just look at the mailing address and the rental address.

I would state that your contractor is representing you in a PM capacity. It doesn't matter that he is not doing ALL of the standard duties of a PM. Many of my out of state landlords have this exact set up.

If you are good with it, resubmit to your agent with your contractors name as the PM. That should fix the issue.

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Mark Fries
Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
7y
@Jane A.
It's not common at all. I would cancel the policy asap. Insurance companies like to think they can boss people around...usually because everyone just does what they say.
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Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Jane A. Never heard of this before. Just line up another policy.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
7y
I've never heard this before either. I suppose it might depend on the size or nature of your portfolio, but my insurance company has never asked me who manages my properties.
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Jason BottPro Member
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
7y
Originally posted by @Jane A.:

I moved out of state and continue to manage most of my rentals myself with help of reliable contractors. My Insurance company demands to hire PM company or they would cancel the insurance. What insurance company will be better for out of state landlord? I do not want to be under the pressure of this demand.
Jane, the standard requirement for the insurance companies is to have the owner or a PM within 75 miles of the rental. The question rarely gets asked of clients because the underwriter can just look at the mailing address and the rental address.
I would state that your contractor is representing you in a PM capacity. It doesn't matter that he is not doing ALL of the standard duties of a PM. Many of my out of state landlords have this exact set up.
If you are good with it, resubmit to your agent with your contractors name as the PM. That should fix the issue.
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Jane A.
OP
Investor · Shawnee Mission, KS · Member since 2015 · 423 posts · 114 votes
7y
@Mark Fries @Michael Noto @JD Martin @Jason Bott
Guys, thank you very much for support and ideas!
Going to solve this problem now :)
So nice we have our community :)))
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