We are talking about insurance for your Las Vegas rental property, and today we have Curt Bulloch from Bulloch Insurance Brokers joining us. Curt’s company specializes in property management insurance, and they provide advice to property managers on the coverage their clients need. In this blog, we’re asking for Curt’s help in distinguishing between two terms that are often used when discussing insurance.
Additional Insured vs. Additional Interest
When Las Vegas home owners are trying to get their insurance agent to cover a property manager, it can be confusing, especially when navigating the difference between additional insured and additional interest.
Both phrases use the word “additional” in the language, but that’s where the similarities end. There’s a big difference in coverage. As a Las Vegas property manager, you manage properties for others, and you have a management agreement in place. Your owner signs that agreement to indemnify you. Being named as an additional insured on the landlord fire and dwelling policy will give you the same protection for liability coverage as the owner of the property. It’s important to have.
Additional Insured Coverage Protects You and Your Owners
You need to get a copy of the policy that shows your company is named as an additional insured. If there’s a slip or trip and fall and someone is injured on the property, both you and the owner will likely be named in a lawsuit. The owner’s insurance policy would cover you as well as the owner.
If you aren’t named as an additional insured, the owner of the property would have to pay your legal fees, according to your signed management agreement. When you’re named as an additional interest, you’re not getting any coverage or legal protection. Additional insured, however, comes with complete coverage.