Difference between Additional Insured vs. Additional Interest Insurance Policy for Your Walnut Creek Rental Property

Today as my guest I have Curt Bullock from Bullock Insurance Brokers here to talk about insurance. He specializes in working with property managers and property investors in the insurance industry. Our topic is the differences between being named Additional Insured or Additional Interest. Curt will explain these differences, which can be a tongue twister.

Landlord Policies and Additional Insureds

When you have an investment property, you have a landlord policy. You need to add your property manager to that policy as an Additional Insured or an Additional Interest. As an Additional Interest, property managers will get a copy of the policy and you’ll be informed when it renews, cancels, or has any changes. As an Additional Insured, your manager will have rights to that policy. We always recommend property managers being named an Additional Insured.  It gives you and your property manager protection. There is liability coverage, so if someone gets hurt when your tenant is having a party and a lawsuit is filed, the property owner and the property manager will be covered.

If a property manager isn’t named as an Additional Insured, there will be competing legal interests, and that won’t be good. Property managers represent owners. Because of that, the property manager should have the same rights to legal counsel and should be covered just like the property owner is.  Your insurance policy as the owner should cover the manager and you. It’s a smarter way to protect yourself and your cash flow. You want to protect the relationship between owner and property manager, too.

Insurance Industry Norms

This may seem like it should be normal in the insurance industry, but it isn’t necessarily. There are quite a few insurance companies that don’t do this. If you have a company that doesn’t name your property manager as an Additional Insured, find another insurance company. Don’t put anything at risk. As your insurance agents, we will look at your property and find the best company and policy for you.

If you have any questions about your insurance policy and how to name your property manager as an Additional Insured, please contact us at Stokley Properties.