Should I Add My Property Manager to My Insurance Policy

For many HOAs and condo associations, this is the time of year that insurance renewals start to creep up on board members’ to do lists. As you are conducting your insurance renewal process, one question that may arise is if you should add your property manager to your association’s property insurance. The answer is unequivocally yes.

Why Add Your Property Manager to Your Insurance?

If an individual were to sue the association for a property-related issue, such as water damage, pet-related damage or injuries, vandalism, theft, slip and fall, or any other similar type of issue, they would likely name both the association and the property manager as defendants in the lawsuit. Property insurance generally carries a provision that covers the legal fees associated with defending those named in the policy. If the property manager is not covered in the policy, they will not have access to coverage of these legal fees. This can cause two complications for the HOA or condo association:

1. The association will need to pay for the property manager’s legal fees out of its own pocket, which could amount to tens or even hundreds of thousands of dollars.
2. If the insurance company covers both the association and the property manager, you will be able to develop a unified legal strategy that covers you both, which can make for a stronger defense.

How to Add Your Property Manager to Your Insurance Policy

When you contact your insurance company to add your property manager to the policy, they may ask if you would like to add them as an “additional interest” or “additional insured”. Additional Interest means that the property manager is informed about policy renewal dates or other administrative issues related to the policy. However, they are not covered by the policy itself. Instead, make sure to tell the insurance company that you would like to add your property manager as an “additional insured.” This designation provides them the legal coverage that they will need in the event of a lawsuit. Your insurance company may charge a small fee for adding the property manager to the policy, but it should not be a significant amount.

Nobody likes to think about the possibility of a lawsuit against their association. However, it’s important to be prepared for one by naming your property manager as an additional insured on your insurance policy. CCM is well-versed on the ins and outs of commercial property insurance. Contact us today to learn about our property management expertise.

Consolidated Community Management (CCM) is a full-service property management company specializing in condominium and homeowner association management in Broward and southern Palm Beach Counties.  We are committed to working together with community Boards of Directors to develop management plans tailored to the unique requirements of each community and their residents.

CCM provides a quality of service that is unique to our industry and consistently delivers a distinct competitive advantage.  Our concentrated, extensive local presence and knowledge of community associations results in lasting partnerships and superior service.  We have built our industry reputation on employing the best in the business and assigning only a limited number of properties to each Property Manager Team.

Our team at Consolidated Community Management provides expert property management services at competitive prices.  Contact us today by calling (954) 718-9903 or clicking on ccmfla.com.