Landlords are dealing with a litigious industry. Being a landlord in the U.S. can be risky. I once read that if you want to get sued in America, one of the best ways to do it is to become a landlord. So, you need to have proper insurance for your rental property.
Landlord Insurance: Regular Reviews
I am not an insurance agent, and I can’t give you specific advice, but make sure you talk about your insurance needs with a qualified agent regularly. A lot of landlords get a policy and then don’t look at it for 10 years or more. You should check in with your insurance agent every couple of years and review your policy.
Property Management San Francisco: Insurance Requirements
I require our clients to have $1 million in liability insurance. I also recommend wrongful eviction coverage. This is important, especially in San Francisco. We require that Gordon Property Management be named as an additional insured on your policy. This is routine for most insurance companies. A few companies will no longer do this, so if you’re thinking about hiring a property management company, check with your insurance agent and make sure they will name your property manager as an additional insured.
Additional Insured vs. Additional Interest
You don’t want to name your manager as an additional interest – that’s different. We need to be listed as an additional insured so we can present a unified defense in the event of a tenant lawsuit. If we are negligent as your property managers, we have our own insurance to cover us. But, most tenant lawsuits are frivolous, and as a property manager, my management fee does not cover that landlord liability.
Discuss your insurance needs with a qualified agent. If you need a referral to a great insurance agent, please contact us at Gordon Property Management. I’d be happy to tell you more about rental property insurance and anything pertaining to San Francisco property management.