I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.

I’ve known Derrick Scott for a while, but we’ve been getting to know each other better recently. Derrick is a property management company owner as well as an insurance company owner with over 25 years of experience in the insurance industry. He’s particularly familiar with insurance as it applies to property managers in working with owners, tenants, and company stuff. We’ll dive deep into the topic of insurance, especially the master policy concept.

We all know that you can require renters’ insurance in your lease agreement, your tenants will show you a copy of the agreement, and then they’ll go cancel the policy. The concept of having a master policy is a potential way of getting around this by having the management company act as the insurer.

The problem with property insurance, or landlord insurance, is that some companies don’t cover specific things like certain dog breeds, while others do. You may never know whether your policy covers these things unless you dig down deep. This sort of thing is what led Derrick to wanting to provide a solution for property owners that makes sure that vicious dog liability is covered.

We’ll cover lots of other topics, too, such as whether you should carry errors and omissions insurance even if your state doesn’t require it, some of the complicating factors surrounding workers’ comp, which kinds of insurance you absolutely must (and definitely should) carry for your property management company, and much more! Tune in to learn more about this different aspect of property management and gain a deeper understanding of how to best protect yourself and your company.

 

Here’s where you can find Derrick:

IMG (Insurance Management Group)

[email protected]

Derrick Scott on LinkedIn

 

Show Notes

[01:45] - Brad introduces today’s guest, Derrick Scott, and explains what today’s episode will cover.

[03:02] - Derrick takes a moment to talk a bit about himself, his career history, and how he got to where he is today.

[04:32] - Brad brings up today’s first major topic: the master policy concept.

[05:46] - We hear Derrick’s thoughts on the renter’s package master policy concept, and what he thinks of the management company owner having a master policy and passing along the insurance to the tenant.

[07:09] - The first problem, Derrick points out, comes from an administrative standpoint.

[08:47] - Brad and Derrick break down the levels of coverage that Derrick has been talking about.

[11:22] - Brad shares a recent example of a military couple who they sadly had to turn down based on the breed of their dog.

[13:37] - Derrick transitions to talking about landlord insurance.

[16:29] - How does this work with somebody who has an escrow account in terms of doing a landlord insurance master policy?

[19:59] - Derrick “translates” what he and Brad have been talking about to laymen’s terms for listeners who may not be familiar with the concept.

[20:57] - We hear about some struggles that Brad has had with trying to get their owners to name them as additionally insured.

[22:06] - What happens when an owner has insurance and you’re not named as additionally insured?

[24:27] - Brad circles back to the topic of renting to tenants with animals and staying covered by insurance.

[26:46] - Derrick responds to what Brad has been saying and points out that it involves setting expectations for the renters while also making sure that the owner and tenant have coverage in case the pet does damage.

[31:21] - Brad switches over to talking about insurance for the management company itself. Derrick then addresses what type of insurance is necessary or ideal.

[34:00] - Things get a little bit tricky with other coverages such as personal and advertising injury, which some policies don’t have.

[37:22] - Brad shares a side story to illustrate the point that Derrick has been making.

[39:22] - We hear about errors and omissions insurance, which Brad isn’t required to have because of a Texas law. He carries it anyway, and Derrick absolutely recommends it. They then discuss tenant discrimination liability.

[42:46] - Derrick digs deeper into the topic of workers’ comp.

[44:42] - Brad brings up some boutique coverages, such as cyber liability.

[47:07] - Derrick lists the insurance must-haves that a company needs, including workers’ comp, commercial general liability, and more.

[48:52] - Now that Derrick has addressed the must-haves, what insurances does he think are should-haves?

[50:25] - What would be the best way to get in touch with Derrick to learn more or work with him?

 

Links and Resources:

[email protected]

(619) 988-6708 (Allison DiSarro from Seacoast Commerce Bank)

Seacoast Commerce Bank

RentWerx

NARPM

NARPM Broker Owner Conference

PetScreening