Most insurance providers are willing to add the property management company as "additional insured" upon request. In most cases scenario, the premium does not change.
However, some smaller insurance carriers will charge additional for this or refuse to do so as they see it as an additional risk. On the other hand, the major carriers and agents who understand real estate investments actually see the "additional insured property managers" reduce risk. Therefore, they will not charge extra for it.
Please make sure you are purchasing a RENTAL DWELLING INSURANCE and not the homeowner's insurance.
- Always make sure to have your property management company is added as “additional insured,” not as “additional interest.”
- Ask about the additional charges. If there is one, try looking for other companies to provide insurance. If you cannot find one that does it for free, remember that an additional fee may still be cost-effective, considering all the coverage.