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Additional Insured Endorsement Requirement for Properties Managed by Limestone Investments

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Additional Insured: An Important But Largely Unknown Insurance Term

Insurance Terms 101 for Home Owners:

Homeowner's Insurance (does not include an "Additional Insured" endorsement unless you request it.)

Homeowner’s Insurance (does not include an “Additional Insured” endorsement unless you request it.)

What does Homeowner’s Insurance typically cover?

If your home is damaged by fire or flood, Homeowner’s Insurance will cover those issues. If you have a mortgage, Homeowner’s Insurance is required. There is also liability included in Homeowner’s Insurance and varies a lot. The more coverage you buy, the more it covers. Liability insurance is what covers you if a tenant or guest gets hurt on your property.

TIP for Lowering Your Homeowner’s Insurance Premiums:

We recommend you increase your Homeowner’s Insurance deductible to the highest possible so your insurance premiums are less.

Renter’s Insurance (does not include an Additional Insured endorsement)

Renter’s Insurance (does not include an Additional Insured endorsement)

Renter’s Insurance covers the renter’s personal possessions and may offer lodging if something goes really wrong. We make this a requirement for tenants who live below other tenants. That’s because things seem to always go really wrong in rental properties.

Additional Interest (don't confuse this with an "Additional Insured" endorsement)

Additional Interest (don’t confuse this with an “Additional Insured” endorsement)

What is “Additional Interest“?

On your Homeowner’s Insurance policy, you may notice your mortgage holder is listed as additional interest. This means if you stop paying your premium or if you cancel your insurance, they will will get notified.

Additional Insured Endorsement - The Definition

Additional Insured Endorsement – The Definition

An Additional Insured Endorsement covers someone other than the policyholder. In this case, that “someone” is Limestone Investments, your property manager. This means if your tenants get injured and file a claim against you or Limestone Investments, we are insured jointly. This happens about once every year by a tenant who claims they were injured in a “Slip and Fall.” It’s annoying and there isn’t much we can do about it. The benefits to you and us is we will have a joint defense against the attack.

You will need to ask your homeowner’s insurance company to add an endorsement to your policy that lists Limestone Investments as Additional Insured.

Generally, the Additional Insured request conversation goes in one of two directions:

  1. Confusion with Additional Interest: Your insurance company may offer to add us as an “Additional Interest” At face-value, this might seem like what you’re looking for. But refer to the definitions above. “Additional Interest” is an entirely different category. It doesn’t protect Limestone Investments, your property manager.
  2. Charging a Fee to Add the Additional Insured Endorsement: The insurer may want to charge you a fee to make the change to your policy. Our recommendation is that you either ask them to waive this charge or you will take your business somewhere else. There are many competitive policies out there with no charge to add an Additional Insured endorsement to your homeowner’s insurance policy.

Either way, it’s important that you come out of this process with Limestone Investments added as an Additional Insured endorsement to your policy. This addition closes a critical loophole and ensures that everyone in the home rental system: Tenant, Limestone Investments, and you.

Additional insured is not an option. It is a requirement and we do track it.

We will not manage your property without it.

 

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