When a Property Manager is hired, they take on a range of responsibilities on behalf of the property owner. At Priority Property Group, we don’t have a financial stake in the property, as we are not co-owners. However, we do assume certain risks and liabilities similar to those of a homeowner.

Although Priority Property Group carries both Errors & Omissions (E&O) Insurance and General Liability Insurance, these policies only cover claims related to the services we provide as property managers. They do not cover issues related to the property itself.

Essentially, while a Property Manager takes on homeowner-like liabilities, our insurance policies don’t offer the same protection as a landlord’s insurance policy. This exposes the management company to potential claims and lawsuits arising from property-related incidents. For example, our insurance would not cover incidents like injuries on the property, burglary, fire, or water damage.

A standard landlord insurance policy typically protects the homeowner against these types of claims, but it doesn’t extend coverage to the Property Manager under our E&O or General Liability Insurance. To address this gap, we require that landlords add the Property Manager to their insurance policy as an additional insured, which then extends this crucial coverage to us.