Tag Archive for property manager

property manager as named insured on condominium policy

People and entities being named on someone else’s policy is nothing new. People ask this to transfer the risk to someone else. If you lease a space, you will be asked the name the landlord, if you rent a hall for a party, you will be asked to name the hall as an additional insured.

So be prepared to have the property manager ask you to name them as additional insured.

Beware!  There are ways to do it and ways not to. Be careful to add anyone but your condominium as additional “named” insured. and never list their name first in the named insured section. Do you know who controls the policy and gets paid first? it is the “first named insured on the policy.

It is customary to have the property manager asked to be named on the general liability section, the fidelity ( employee dishonesty ) section or policy, and on the directors and officers policy.

There are so many different ways the companies handle it, you need to read it and be clear. Just because it says additional insured, Please read the fine print.

Most companies have been asked so many time to add the property manager as an additional insured, that they have just gone ahead and baked it into their policy.

Remember also, that the more people you add to the policy, the more people you are defending and covering with your limited limits.

Always read and ask questions

Good Luck!


here is a recent article I read from a lawyer on the subject.


Condo law


Who Pays For the Property Managers Extra Charges?


Claims expenses from a property manager can be costly.

What can you condominium do to insure the extra expense? Most contracts between the property manager and the condominium association do not cover these extra expenses

Property Manager Claims Expense:

The role of your property manager is extensive!  They are responsible for general upkeep and maintenance, managing income and expenses, negotiating contracts, enforcing rules and regulations, and making sure your building is safe and secure for its tenants.
In the event of an insurance claim a lot of paperwork, documentation, and extra work needs to be done!  If your property manager has to work extra hours or pay additional expenses your association may be getting an extra bill.  Having an additional “Property Manager Claims Expense” on your insurance policy will help with these unforeseen costs.
Heavy snow in New England last year caused a few roofs to collapse in my area.  A property manager at one of the condo complexes explained what the claims process was like.
It began with an emergency call in the middle of the night and a cold ride to the condominium.  A few pictures of the damage, lots of documentation, and a call to the insurance company were just the beginning.  The added hours of relocating the tenants, meeting contractors, visits to the site to make sure work was being done in a timely manner, all added to her regular workday.
If your condo association has a claim the property manager’s added expenses will probably be billed to the association.  Extra coverage on your insurance policy will help pay for these expenses.