Property management firms help landlords maintain and track the income of apartments, condos, and other rental properties. These businesses also work to secure the properties of real estate investors. As a property management business owner, you know there are excellent opportunities in this growing industry but also risks that come with it. To protect yourself against risks like liabilities and lawsuits, you will want to turn to property management insurance. Keep reading to discover the policies and topics related to this critical part of your business plan.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
Your property management liability insurance package will need general liability protection. This policy protects your business from third-party liability claims like property damage and bodily injury. Examples of coverage include:
Someone walks into your property management office. While there; they slip, fall on the floor, and need medical treatment
An environmental hazard on a property you manage causes someone to get ill
You can customize general liability insurance for property managers with add-ons or endorsements such as:
Product liability–Covers liabilities associated with products or items you sell that might cause injury to a client
Employment practices liability–Protects your business from employee claims of discrimination, wrongful termination, and workplace harassment
Tools and equipment coverage–Helps your business tools and equipment get protected from theft, vandalism, and other covered perils
A standard property management insurance coverage for general liability will be $1 million per occurrence and $2 million in aggregate.
Yes. Most general liability policies will automatically include coverage for personal and advertising injuries. These claims arise from invasion of privacy, slander, libel, and copyright infringement.
Yes. Your general liability insurance for property management company will need to cover a host of issues from damages. General liability insurance covers many of these damages. However, there are exclusions. Examples include liability for worker injuries and liability for dishonest employee actions.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
Your property management professional liability insurance will cover lawsuits, legal fees, and court judgments resulting from your business's mistakes or oversights. Examples include:
You forget to inspect a property, and a community member sues you for failing to deal with pests
Your property management company neglects to repair a property, causing a resident to sue you for negligence
Your property management insurance can be bolstered further through the use of add-ons that fortify your policy coverage. Some examples include:
Additional insured–This lets you name additional parties to an existing policy
Extended reporting period–Bolsters your claims-made professional liability policy by allowing you to file claims even if your policy period has expired
Professional liability insurance will offer around $1 million in coverage for property management businesses.
There are several terms that you may see professional liability insurance referred to as. For example, it is also called professional indemnity insurance for property management by some insurers.
Another name you might see professional liability insurance listed as is property management errors and omissions insurance. Your property managers e&o will cover claims for breach of contract, violation of good faith, and other related perils active in your property management business.
No. Refusing to hire someone or other issues that result from your employment-related practices are generally not covered by a professional liability policy. You would need to get an employment practices liability insurance policy to cover the costs of those claims.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Your commercial and residential property management insurance program will need a way to protect your business building. Commercial property insurance is one way to protect your business from the damages that result from fire, theft, vandalism, and other covered perils.
Flood insurance–This policy allows you to include forms of water and flood damage that a typical commercial property policy would exclude
Outdoor sign coverage–Protects business signs outside your business building from covered physical damage
This type of property management business insurance will offer a limit of $60,000. Your coverage limit will depend on the property value you need insured.
Outdoor property coverage is an add-on to commercial property insurance that covers fences, signs, and temporary locations that you use for business purposes.
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
Business owner’s policy combines general liability insurance and commercial property insurance. This means your policy will cover damages to a business building and liability claims. Example coverage includes:
A thief breaks into your business office and steals some electronics and computers
A covered natural event causes physical damage to your property
Someone slips and falls in your office
Inland marine–Protects your property management business’s tools and equipment when transported over land
Employee dishonesty–Helps your business pay for costs related to employee actions that cause financial harm. These include stealing from the business, cyber crimes, and forgery
This insurance for commercial property managers will have around $1 million in general liability coverage and $50,000 in commercial property coverage in a business owner’s policy.
No. Commercial property insurance is not a legal requirement for property managers. However, some clients may require that you have similar coverage provided by a BOP to be approved to do business with them. One of these clients may ask your business to provide proof of insurance.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance is a property management insurance policy that helps repair and replace your tools when a covered event happens to them. Some examples include:
Your business suffers a hit-and-run attack where your tools are stolen
While at a job site, your tools get damaged by another party
Earthquake insurance–Provides compensation for tools and equipment damaged during earthquakes and landslides. Earthquakes are generally excluded as covered incidents in many commercial insurance policies
Equipment breakdown–Protects tools and equipment from other sources of damage like mechanical failure and electronic disruption
Your property manager insurance coverage for tools and equipment will be between $5,000 and $20,000.
The tools and equipment coverage of your real estate property management insurance program can cover building materials with installation floater coverage. This policy protects the value of these building materials for things like shingles, flooring, and windows of properties you manage.
Your real estate management insurance package will offer commercial auto insurance to protect business vehicles. For this, you will need commercial auto insurance. This policy protects your commercial vehicles when they are being used in service of your business. Your commercial auto policy will offer coverage in areas that include:
Collision–Protects vehicles from damage costs when they get into a road collision with another vehicle
Comprehensive–Enables benefits when your vehicle is damaged physically by events other than road collisions
Auto liability–Helps you pay out any liability costs you may be responsible for from using your commercial vehicle
Roadside assistance–Helps pay for services when your property management business vehicle is stuck on the side of the road and needs towing or other similar services
Rental reimbursement–This policy pays back any costs you need to rent vehicles in your property management business due to a damaged vehicle needing repair
Commercial auto insurance will typically offer a liability coverage limit between $500,000 and $1 million for property managers.
Workers’ compensation insurance pays employees when they get sick, injured, or disabled while working. Examples of this coverage include:
While working at your office, an employee trips over some inventory and hurts their leg, needing medical attention
One of your employees cannot work after contracting a disease
Yes. Employer liability protection is a policy that helps defend your business against lawsuits filed by employees for injuries sustained at your workplace. Luckily, many workers' compensation policies will automatically include this type of protection.
The injured employee has a responsibility to report the injury to their employer. After this, the employer must alert the insurer of the incident through a report that includes the injury's date, time, and circumstances. Lastly, you will file a workers' compensation claim so the employee can get benefits immediately.
Excess liability insurance is a policy that extends the coverage of an existing policy beyond the typical coverage limits. Suppose your professional liability insurance only has $500,000 and a $1 million lawsuit is filed. Excess liability insurance can cover the remaining $500,000, so that you’re still safe.
No. An excess liability policy will not come with a deductible typically. This means that once you satisfy a deductible requirement with the original policy, you will not need to do it again to be qualified for excess liability coverage.
Excess liability coverage can be purchased in increments, with limits up to $25 million or more.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $42 | $504 | $0-$500 |
| Professional liability insurance | $47 | $564 | $1,000-$2,000 |
| Excess liability insurance | $45 | $540 | $1,000-$2,000 |
| Commercial property insurance | $73 | $876 | $1,000-$2,000 |
| Business owner's policy | $90 | $1,080 | $1,500 |
| Tools and equipment insurance | $52 | $624 | $500-$1,000 |
| Commercial auto insurance | $63 | $756 | $500-$1,000 |
| Workers compensation insurance | $99 | $1,188 | $2,500-$5,000 |
The average property management insurance cost is $42 per month or $504 per year for a $1 million general liability policy. Factors that affect premiums are claims history, policy limits, deductibles, number of employees, location, and annual revenues. Here’s a table providing further details of the property management company insurance cost estimates by showing how much the best companies charge for a $1 million general liability coverage:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance |
| The Hartford | $27 | $324 | Real estate industry experience |
| CoverWallet | $30 | $360 | Comparing property management insurance quotes online |
| Tivly | $32 | $384 | Comparing property management insurance quotes over the phone |
| Thimble | $35 | $420 | Property management policy customization |
| Hiscox | $38 | $456 | Property manager liability insurance with worldwide coverage |
Compare a property management insurance quote to another to better understand your actual rates. Click the “Get Quotes” button on this page to start.
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The property management insurance companies in the reviews below are some of the best. Each will bring something to the table for your insurance policy. Look at the reviews below to find out the strengths of these companies and what unique benefits to consider.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is a highly-rated insurer that helps you manage property management risk through different policies. This insurance option offers a 10% discount when you bundle multiple policies and offer options like general liability, workers' compensation, and commercial property. NEXT also boasts a B+ rating with the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance
Average cost: $25 per month
Our rating: 10/10
Local agents to assist your business
Long-standing insurer with over 200 years of underwriting experience
Helpful mobile app
Some states are not covered
The Hartford has excellent insurance policies with many options to protect your business. They have an A- rating from AM Best and an A+ Better Business Bureau rating. This company makes getting a quote simple and reliable thanks to its numerous years of experience. The Hartford started as a fire insurance company in 1810. Since then, they have also become experts in many other industries.
Best for: Real estate industry experience
Average cost: $27 per month
Our rating: 10/10
Allows you to call if you want to skip filling out an insurance form.
Get a quote without committing to a purchase
Allows you to compare insurance policies between insurers
Not an insurance company but an insurance broker
CoverWallet acts as your digital gateway to the world of online insurance. They offer business owner’s policy, general liability, and workers' compensation options for property management business owners. They have a dedicated section for property management insurance that clears up any questions you might have. All-in-all, they are an excellent option for a first-time insurance buyer. Coverwallet has an A+ Better Business Bureau rating.
Best for: Comparing property management insurance quotes online
Average cost: $30 per month
Our rating: 10/10
Takes the work out of insurance buying by matching you with insurers
Get quotes from multiple insurers that are tailored to your needs
Quick phone response rate
You need to talk to a representative to get quotes
Tivly has a huge selection of 200 partners to select your property management insurance policies. They answer the phone quickly to make the process as streamlined and quick as possible. Thanks to their deep selection, you will have no trouble finding something that fits your personal situation. Tivly has an A rating from the Better Business Bureau. Call now to compare quotes over the phone.
Best for: Comparing property management insurance quotes over the phone
Average cost: $32 per month
Our rating: 10/10
Offers short-term coverage
Excellent mobile app
Offers resources to help first-time customers get the hang of the ropes
You can't reach customer service by calling
Thimble is another excellent choice of insurer for property managers. They stand out from the rest by the amount of customization you get at an affordable price. They let you set your policy terms down to the hour, day, or month and pride themselves on helping customers get policies quickly. Thimble has secured an A+ rating from the Better Business Bureau.
Best for: Property management policy customization
Average cost: $35 per month
Our rating: 10/10
A leading insurer of specialist insurance policies
Passionate service professionals who work with you
Discounts for bundling multiple Hiscox insurance plans
The business owner’s policy is only available in 43 states so far
Hiscox offers the best personalized and tailored insurance experience from their dedicated agents. They have a dedicated section to the challenges property managers face and which solutions they offer to keep you protected. In particular, their professional liability policy stands out for how customizable it is and how it addresses specific risks in your field. Hiscox has over 3,000 employees in 14 countries. Their customers are from all across the world.
Best for: Property manager liability insurance with worldwide coverage
Average cost: $38 per month
Our rating: 10/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Not all those who wander are lost.
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