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As your property management partner, Evernest is committed to managing your property effectively and minimizing risks for you as a property owner. One crucial step in this process is naming Evernest as an "Additional Insured" on your homeowner’s insurance policy. This designation safeguards both parties against potential liability claims that may arise during the day-to-day operations of property management.
In this article, we’ll define “Additional Insured” in the context of a business relationship between you as a property owner and your property management company. We’ll discuss the importance and benefits of adding Evernest to your policy, explain the scope of coverage and our coverage requirements, illustrate how to add us to your insurance policy, and answer some commonly asked questions. Let’s start by defining the term “Additional Insured”.
What “Additional Insured” Means
"Additional Insured" refers to a person or entity that is covered under another party’s insurance policy. In the context of property management, it means that your property manager, in this case, Evernest, is added to the liability portion of your homeowner's insurance policy. This inclusion provides us with protection under your insurance coverage if we are named in a lawsuit related to the property.
Why does this matter? The added protection this step provides allows us to manage your property with peace of mind, knowing that both your interests and ours are covered. Without this coverage, Evernest could face legal liabilities that would complicate our ability to provide the high-quality service you expect.
Scope of Coverage for ‘Additional Insured’ Parties
When a property management company like Evernest is added as an “Additional Insured” on a property owner’s homeowner’s insurance policy, the scope of coverage typically includes the following:
Liability Protection
The property management company is covered for liability arising from property-related incidents, such as bodily injury or property damage, for which they may be held legally responsible. This is particularly important if a resident or guest sues both the property owner and the property manager.
Legal Defense Costs
The insurance policy covers legal defense costs for the property management company in the event of a lawsuit related to the property. This includes attorney fees, court costs, and settlements or judgments, up to the policy limits.
Vicarious Liability
It extends coverage for actions the property management company undertakes on behalf of the owner, such as managing resident relations, property maintenance, or other operational responsibilities. This protects the property manager from claims that may arise due to their actions or negligence while managing the property.
Extended Protection for Shared Liability
If both the property owner and Evernest are named in a lawsuit, the insurance policy will protect both parties under the same liability coverage, reducing the risk of disputes over whose insurance should respond.
Claims from Third Parties
Coverage also includes claims brought by third parties against the property management company for incidents such as slip-and-fall accidents on the property, resident disputes, or damage caused during repairs.
Limits and Exclusions
While the 'Additional Insured' endorsement provides substantial protection, it typically only covers specific risks related to the property. It does not cover the property manager’s independent business operations or actions outside the scope of property management.
Our Coverage Requirements
We require our customers to obtain $300,000 minimum liability coverage to ensure adequate protection against potential claims. This amount covers substantial legal fees, medical costs, or damages that could arise from incidents on your property, safeguarding both you and Evernest.
Adding Evernest as an "Additional Insured" typically doesn’t increase your insurance premium. This addition is a standard procedure for many property management arrangements and is generally accommodated by insurance companies at no extra cost to you.
How to Add Evernest as an “Additional Insured”
Step 1: Contact Your Insurance Company
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Inform your insurance provider that you want to add Evernest as an "Additional Insured" on the liability portion of your policy. Sometimes you can request this change online through your customer account. Other times you may need to call and speak with a customer service representative.
Step 2: Provide Evernest's Details
Use the following information when asked for Evernest’s details for your policy:
Evernest Property Management
[Market Address]
[City, ST Zip]
This ensures that the appropriate Evernest office managing your property is included in the policy.
Step 3: Confirm and Share the Certificate of Insurance (COI)
Once the insurance company updates your policy, request a COI that includes Evernest as an "Additional Insured." Send a copy of this document to your Evernest property manager to keep on file.
The Benefits of Adding Evernest as Additional Insured
Beyond simply being a requirement for our property owners, there are a myriad of other reasons why adding your property manager as additional insured on your homeowner’s insurance policy is the right call. These reasons include:
Mitigating Legal Risks
By including Evernest as an "Additional Insured", you extend the liability protection of your policy to cover our team. This means that if we are named in a lawsuit due to an incident on your property, your insurance will help cover our legal expenses, reducing potential financial strain on both parties.
Streamlined Claims Process
In the event of a claim, having Evernest as an "Additional Insured" helps streamline the process. It clarifies who is covered and ensures that Evernest has access to necessary defense and coverage, facilitating a quicker resolution.
Protecting Your Property Investment
With Evernest protected under your insurance policy, we can focus entirely on managing your property efficiently and effectively, without the risk of unforeseen legal complications.
Addressing Common Questions
Will This Increase My Premium?
Adding Evernest as an "Additional Insured" typically doesn’t result in a premium increase. It’s a routine request for managed rental properties and should come at no extra cost to you.
Is This Really Necessary?
Yes, for us to manage your property with full legal protection and provide the best service, being named as an "Additional Insured" is required. It allows us to handle all aspects of property management without exposure to unprotected legal liabilities.
What If I Switch Property Managers?
If you decide to switch property managers, you’ll need to update your insurance policy by removing Evernest and adding the new property manager. This ensures the new manager is covered and Evernest is removed from the policy.
Does adding Evernest as Additional Insured affect my coverage limits?
No, this does not reduce your coverage limits. It simply extends your policy’s protection to include Evernest in relation to the specific property we manage.
What should I do if I have more questions?
Contact your insurance provider or your Evernest property manager for assistance. We’re here to help ensure that your property and our management are fully protected!
Final Thoughts: Adding Your Property Manager as ‘Additional Insured’
Adding Evernest as an "Additional Insured" on your homeowner’s insurance policy is a key step in reducing risk and ensuring that your property is managed smoothly. It extends your insurance coverage to include your property manager, providing essential protection against liability and potential legal issues. This safeguard allows us to focus on managing your property efficiently, knowing that both parties are fully covered.
The key takeaway here is that proactive risk management, like adding an "Additional Insured," helps protect your investment and supports a strong partnership between you and your property manager. For any questions or assistance, don’t hesitate to reach out to your Evernest Property Manager. We're here to help!