Why do we add TOP to insurance as ADDITIONAL INSURED?

From David Mescher, preferred insurance agent:

Allstate is one of the companies that do not provide for an Additional Insured on their policies. If you call them, they will tell you they can add Treaty Oak as an Additional Interest but this is not the same – all it means is Treaty Oak gets notified if your insurance cancels. Whereas an Additional Insured means that Treaty Oak is covered by your insurance for a liability claim from a tenant.

 

Therefore, to be in compliance with Treaty Oak, you will need to get a new policy with a different company and I can help you with this. The ones I use most often are Travelers, Safeco/Liberty Mutual and Homeowners of America. To get quotes I need the following information because the companies perform a background check:

 

FROM THE TOP WEBSITE:

Why does your property management agreement require me to maintain a liability policy naming Treaty Oak Properties as a co-insured?

This is a relatively simple clause that is often misunderstood. Your standard homeowner’s insurance policy will almost always include a liability provision for at least $100,000. Most insurers will add a property management agreement as an “additional insured” at no additional fee by simply asking. There are some insurance companies that will not do so, and in this case, we require you to switch insurers to a company who will do so. The logic is simply that, in the unlikely case a tenant or tenant’s guest sues us both, that we both have the same legal representation. By adding us as an additional insured to your homeowner’s liability policy, it ensures that we don’t have competing interests and different representation. (As an aside, we have never been sued by a tenant or tenant’s guest.)