The best protection an owner has in the event of a lawsuit brought in conjunction with their rental property, is a landlord insurance policy. We require that our owners carry at least one million dollars of coverage. We also require that SJA Property Management be named as an “Additional Insured” on the policy. Property management agreements require owners to name the property management company as additional insured because the management company does not hold title to the rental property and therefore cannot acquire general liability insurance on property. Without this coverage, a company would be exposed to liability from defects (such as faulty wiring) in the home, resulting in a lawsuit. Often there is no extra premium charge to the property owner to add the management company as additional insured.