Why Your Property Manager Should Be Listed as Additional Insured

This is one of the most common questions our owners ask, so we put it in writing.

When you hire Lux to manage your property, we take on nearly every responsibility you would otherwise carry as the landlord. Marketing, leasing, tenant communication, maintenance coordination, statutory notices, security deposit handling – all of it. From a liability standpoint, that means we step into many of the same exposures that come with owning a rental property.

Naming your property manager as Additional Insured on your landlord (rental dwelling) insurance policy is the simplest way to make sure both of us are protected if something goes wrong at the property. It costs nothing or close to nothing on most policies. It is a one-line endorsement.

Why It Matters

If a tenant or guest gets injured on the property, slips on a wet floor, falls down a stair, gets bitten by a dog, drowns in the pool – they typically sue everyone connected to the property. Owner. Property Manager. Sometimes the maintenance vendor. Sometimes the HOA.

Property managers carry their own insurance – Errors and Omissions for professional negligence, General Liability for commercial operations, sometimes Workers Compensation. None of those policies cover claims arising from the property itself. The property’s landlord policy does. Adding your property manager as Additional Insured extends that landlord-policy coverage to us, so:

• One insurer defends both parties. A unified defense, one set of legal fees, far cheaper than two separate insurers fighting over coverage.
• You protect yourself from indemnity exposure. Your PMA has a hold-harmless clause where you indemnify us from claims arising from the property. If our defense is covered by your landlord policy, that indemnity rarely needs to be invoked.
• The case settles faster. Single carrier, single counsel, single decision-maker.

A Real Example

A water heater fails and floods the rental, ruining $30,000 of the tenant’s personal belongings. The tenant did not carry renters insurance. The tenant sues both you and your property manager for the loss. Your landlord policy defends you. Without Additional Insured status, our commercial policies probably do not defend us – leaving us exposed and creating real friction in our partnership. With Additional Insured status, your landlord carrier defends both of us. One claim. One settlement.

How to Add Lux as Additional Insured

It is genuinely easy:

1. Email or call your insurance agent.
2. Ask them to add Keller Williams Realty Phoenix (in Arizona) or Lux Management Group, LLC (in Florida or Alabama) as Additional Insured on your landlord / rental dwelling policy.
3. Have them send the Certificate of Insurance to PM@LuxManagementGroup.com.
4. Done. We will keep the COI on file and update it on each renewal.

Note: “Additional Insured” is a specific endorsement. Make sure the agent does not list us as “co-insured” or “additional named insured” – those are different categories with different legal effects. Additional Insured is the right one.

What if My Insurer Pushes Back?

Most carriers add this without question – it is a routine landlord-policy endorsement. If your carrier objects, that may be a sign that your policy is not actually a landlord / rental-dwelling policy and you should switch carriers. We can recommend agents who handle landlord coverage day in and day out.

Questions? Reach out – PM@LuxManagementGroup.com or call your local Lux office. We are happy to help your insurance agent get the wording right.