Adding Property management company name in Insurance

San Antonio, Texas
San Antonio Real Estate Forum
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Adding Property management company name in Insurance

Steve R.
Member since 2017 · 93 posts · 44 votes

Hi fellow BPers,
Trying out a new property management company for my property in San Antonio. The company is requesting to add their name as additional interest in the landlord Home insurance of my investment property. Is this usual? I have had multiple rentals and none of the management company asked for this. Is it ok to add them in insurance?
Thanks

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Randy Dubiskas
Investor · Placitas, NM · Member since 2019 · 106 posts · 61 votes
5y

@Betty Cruz. I think they want liability protection from being sued 

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  • Randy Dubiskas
    Investor · Placitas, NM · Member since 2019 · 106 posts · 61 votes
    5y

    I have had two different property management companies in San Antonio and they both required to be named as an additional insured or the fees were going to be higher. Make sure you only add them to the liability section not the property damage section. 

    1Reply
  • Anthony FingerPro Member
    Investor · San Antonio, TX · Member since 2017 · 38 posts · 27 votes
    5y

    My portfolio is entirely in Bexar county and I have my properties spread across two property management companies. Both management companies have required me to add them to my insurance as additionally insured.  

    I cannot speak for other investors in other areas of the country but it is common in San Antonio. 

    My insurance company was very receptive to adding my property management and there have been no issues since, so my recommendation is to not sweat it too much.  

    2Reply
  • Randy Dubiskas
    Investor · Placitas, NM · Member since 2019 · 106 posts · 61 votes
    5y

    Usually have to add the lender as well 

    1Reply
  • Betty Cruz
    San Antonio, TX · Member since 2016 · 240 posts · 163 votes
    5y

    I imagine they want that so that they will know that the insurance payments are being kept up. 

    1Reply
  • Randy Dubiskas
    Investor · Placitas, NM · Member since 2019 · 106 posts · 61 votes
    5y

    @Betty Cruz. I think they want liability protection from being sued 

    2Reply
  • Steve R.
    OP
    Member since 2017 · 93 posts · 44 votes
    5y

    Thanks all. Ya Liability protection and missed payments seems to be the reason. Just wanted to know if it is common practice among property management company in San Antonio to do this. 
    Looks like it is actually better for the owner as well since if the property management company gets sued and they don't have liability protection, they might charge the owner for the expenses. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    See this current thread about the same issue:

    https://www.biggerpockets.com/...

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
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  • Nicholas Brumgard
    Property Manager · Member since 2021 · 26 posts · 14 votes
    5y

    @Steve R. I work for Global Realty Group LLC in Cibolo, we require it for our landlords and also like to be added to the tenants coverage plans as well. From my experience it is common practice.

    1Reply
  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    5y

    This is called "Additional Insured". 

    It is a common practice and comes at no cost to you.

    I would also recommend you require your tenants to get tenant's insurance and add you and your property manager as additional insured as well! 

    1Reply
  • Dee Mandrekar
    Member since 2023 · 33 posts · 7 votes
    2y

    any good recommendation for good property management company in South West San Antonio for managing upto 20 units multifamily

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Dee Mandrekar recommend you start a new thread with title, "Southwest San Antonio PMC Referral Needed"

    Not many will see your request here.

    Logical Property Management4.9460 Reviews
    WebsiteView Page
    1Reply
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