Common Mistakes That Increase Property Manager Business Insurance Costs
- 2 hours ago
- 2 min read
Property managers handle multiple properties, tenants, vendors, and maintenance operations, creating significant liability exposure. Many management firms unintentionally increase their property manager business insurance costs by making avoidable mistakes. Recognising these errors helps control premiums while ensuring comprehensive protection for properties, employees, and tenants.
1. Inaccurate Reporting of Revenue or Portfolio Size
Insurance premiums are calculated based on annual revenue and the number of properties or units managed. Overstating revenue or portfolio size unnecessarily increases premiums, while under-reporting can create coverage gaps or denied claims. Accurate reporting ensures fair pricing.
2. Ignoring Risk Management Practices
Failing to implement property inspections, documented lease agreements, safety procedures, and vendor insurance requirements increases exposure. Carriers offer better rates to firms with proactive risk management and a clean claims history.
3. Choosing Improper Coverage Limits
Selecting coverage limits that are too high inflates costs unnecessarily. Limits that are too low expose your firm to potential claims. Properly structured policies with appropriate deductibles balance cost and protection effectively.
4. Overlooking Subcontractor and Vendor Coverage
Using uninsured or under-insured subcontractors and vendors can transfer liability to your firm if incidents occur. Always require certificates of insurance and additional insured endorsements where applicable to minimise exposure.
5. Failing to Review Policies Regularly
Property management firms evolve over time, adding employees, properties, or services. Not reviewing your policies annually can lead to gaps in coverage or unnecessarily high premiums that no longer reflect your business operations.
Reduce Property Manager Insurance Costs the Right Way
Avoiding these common mistakes allows management firms to control property manager business insurance costs while maintaining full protection. Working with a specialised brokerage like Wexford Insurance ensures access to multiple carriers, accurate risk assessment, and competitive pricing tailored to your operations.
👉 Request your property manager business insurance quote from Wexford Insurance today and protect your management business with confidence.
