Insurance

When it comes to an Additional Interest vs. an Additional Insured, the technical difference is that Additional Insureds will be provided a defense and coverage under a liability policy, while Additional Interests will be kept updated of changes and reimbursed for their financial loss in the event of a covered loss under a property policy.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

We require owners to include us on their policies as "additional insured". Tenants must also include the PM company and have 100 thousand in liability. Yes, we have our own insurance as well but if the other party wins and there aren't enough funds to cover costs, the other insurance can kick in balance.

Here is the best example I can give that puts why into perspective, and mind you this is just one sample.

Tenant has a dog, it bites someone. That someone is going to sue the tenant - oh wait, he is renting the property - need to sue the owner and the manager for allowing the pet in the property because they want to go after whomever has the deepest pockets.

Scenario 1 - no additional insured listed on property - 2 different insurance companies with 2 different attorneys - instead of fighting the case, they are fighting each other to see who has the most responsibility and the only parties that win in this case are the attorneys.

Scenario 2 - pm listed as add'l insured on tenant's policy - one insurance company, one attorney is fighting the case instead of each other - no conflict.

Same applies if we are not on the owner's policy.

Our company policy is a General Liability that we add our clients to if they don't have us listed as an additional insured. This does cost $15.93 a month currently.

• Personal and Advertising injury limit: $1,000,000
• Each Occurrence Limit: 1,000,000
• Damage to Premises Rented: $100,000 Any one Premises
• Medical Expense Limit: $2,500 any one person

The medical limit is basically a sum of money that a claim can be made against for medical bills, with no liability or lawsuit involved. It’s basically used to help smaller claims avoid litigation. If it is something major, there is more than likely a lawsuit anyways, and the $1 million in liability will also cover medical bills. Homeowner policies operate the exact same way, so on your home policy you will have a small amount for medical and a large amount for liability. This is completely normal.

It is EXTREMELY important to add the Management company as an "Additional Insured" - NOT just an Additional Interest.