As a vacation rental or property owner, one of the most beneficial reasons to work with a property manager is to assist you with managing the possible risks associated with owning a rental property, as well as decreasing the liabilities that come with ownership. Property management companies normally handle a vast variety of services on the property owner’s behalf, such as property maintenance, emergency services, inspections, marketing, and more.
If you’re working with a reputable property management company, they most likely will already be carrying their own insurance, such as Errors and Omissions insurance or General Liability insurance. These types of insurance help cover the property manager’s day-to-day business operations of the company, as well as protect them from financial losses that come from situations like hiring an unlicensed contractor or wrongful eviction.
However, these policies do not protect from certain claims that can arise in protecting your actual home. This can leave your property manager susceptible to lawsuits or claims for events like burglaries, fires, water leaks, vandalism, injuries that occur on the property, etc.
Experienced Property Managers are progressively requiring their clients to add them to their insurance policies as an “Additional Insured”. When you add them as an “Additional Insured” on your landlord policy, it means that you are extending your coverage to them. Therefore, when something goes wrong, they will be able to present a unified defense with one insurance company representing both, which helps streamline the process in any potential lawsuit arising directly from the property itself.
If you do not add your Property Management Company as an Additional Insured, they would have to take care of any expenses upfront. This in turn causes the Property Manager to ask the property owner for reimbursement under the indemnification clause, costing both parties more time and more money in the process.
Sand Seeker Realty and Sand Seeker Vacations is a licensed and insured real estate and property management group in Panama City Beach Florida. Whether you’re looking to turn your home into a vacation rental or annual rental, we have you covered. It is our job to provide property owners the highest possible profit and return on their investment. Our property owners can have confidence knowing that their investment is in the care of able professionals. Our owners are free from the day-to-day stresses of having to deal directly with tenants or with the property itself.