Don’t Settle for Being Listed as an Additional Interest
If you’re a property manager in California, you’ve probably encountered this situation:
You ask a property owner to add your management company to their insurance policy as an Additional Insured, only to receive a declarations page showing you as an Additional Interest instead.
Those two designations are not the same, and understanding the difference can help better protect your business.
Additional Insured vs. Additional Interest
An Additional Interest simply receives notices from the insurance company, such as:
- Policy cancellations
- Non-renewals
- Policy changes
- Renewals
Being listed as an Additional Interest does not provide liability protection.
An Additional Insured, on the other hand, may receive liability coverage under the policy for covered claims arising out of the property owner’s operations, subject to the policy terms, conditions, and endorsements.
Many property management agreements require the management company to be listed as an Additional Insured—not merely as an Additional Interest.
Why This Matters for Property Managers
As a property manager, you interact with tenants, vendors, contractors, maintenance personnel, and the public every day.
If someone alleges that your management activities contributed to a covered loss, having Additional Insured status may provide valuable protection under the owner’s policy, depending on the policy language and endorsement.
While every claim is evaluated based on its specific facts and policy terms, being named as an Additional Insured may provide broader protection than simply receiving policy notices.
The Challenge: Many Insurance Companies Won’t Do It
One of the biggest frustrations for California property managers is that many insurance carriers simply will not add property managers as Additional Insureds.
Instead, they’ll only agree to list the management company as an Additional Interest.
This is especially common on:
- Tenant-occupied rental homes
- Single-family rental properties
- Condos
- Duplexes
- Triplexes
- Fourplexes
- Investment properties
Many carriers limit their liability exposure by declining Additional Insured requests altogether.
This often creates problems because many property management contracts specifically require Additional Insured status.
The Good News: Some Carriers Will
At Starwest Insurance Services, we specialize in working with California property managers.
We have access to insurance companies that can often accommodate requests to add qualified property management companies as Additional Insureds on eligible policies, including carriers such as:
- Mercury
- Foremost
- First Cap
- Aegis
Eligibility depends on the carrier’s underwriting guidelines, the type of property, occupancy, and other risk characteristics, but knowing which carriers can accommodate these requests can save property managers significant time and frustration.
We Understand Property Management Insurance
We regularly help insure:
- Single-family rentals
- Condominiums
- Duplexes
- Triplexes
- Fourplexes
- Apartment buildings
- Properties owned by LLCs
- Trust-owned properties
- Corporation-owned properties
We also help property managers navigate:
- Non-renewals
- California FAIR Plan placements
- Difficult-to-place risks
- Vacant properties
- High-value rentals
- Landlord insurance (DP-3)
- Property management Additional Insured requirements
Work With an Agency That Understands Property Managers
Not every insurance agency understands the unique requirements of property management companies.
At Starwest Insurance Services, we work with property managers throughout California and understand the importance of obtaining the right endorsements whenever they’re available.
If you’re looking for an insurance partner who understands your business and knows which carriers may accommodate Additional Insured requests, we’d love to help.
Contact Starwest Insurance Services
James Cq Banh
Starwest Insurance Services
📍 13752 Goldenwest St., Westminster, CA 92683
📞 (714) 231-0897
🌐 www.starwestinsurance.com
Related Services
- California Landlord Insurance
- Rental Property Insurance
- Property Management Insurance Solutions
- LLC Property Insurance
- Trust-Owned Property Insurance
- California FAIR Plan Assistance
- DP-3 Rental Property Insurance
- Homeowners Insurance for Investment Properties
Disclaimer: Coverage, endorsements, and Additional Insured eligibility vary by carrier and policy. Whether a property manager can be added as an Additional Insured depends on the insurer’s underwriting guidelines, policy form, and the specific facts of the risk.