Yes, you should!
Typically, landlords hire property managers so they can handle all the burdens of owning rental property. Investing in real estate can be a profitable business but it doesn’t come free of problems. Since a property manager is exposed to the same types of liabilities as you are as the property owner, they will also need protection against property-related legal claims.
When you hire a professional company to manage your property, they will ask to be included on your insurance policy as an “Additional Insured”. Your property manager may have their own Professional and General liability insurance which covers them in the event of a financial loss if they were to make a mistake or do a wrongful act. But, if something happens with the property they are managing, they are not covered and they are vulnerable in the event that someone gets injured or dies on the property due to fire, flood, burglary or someone simply slips and falls, etc. If they are added to the owner's policy as an additional insured, they are covered with the owner in this type of accident.
If you don’t add your property manager as an additional insured, and you and/or your property manager are sued for something related to the property, you may be required to pay your property managers legal fees and expenses out of your own pocket. It is much better to have a unified defense and coverage extending to both parties. That is what the property’s liability policy is for.
Talking to your Insurance Company
You will need to have your Insurance Company add your Property Manager as an “Additional Insured”, and NOT just as “Additional Interest”. If they are an “additional interest” they will only be notified of policy renewals and not be insured on the policy.
Many Insurance Companies that work with Property Managers often understand the importance and will not charge a fee to add them as an additional insured. However, we have found some insurance companies that want to charge an extra fee for an additional insured property manager. If this happens, you may want to find another insurance company.
