Is your agent-owned rental property covered? Barney Schwartz, president and CEO of Preferred Guardian Group, an errors and omissions risk management partner of the association, says agent-owned properties serving as rentals are generally excluded from E&O insurance.

“Agent ownership is defined as 10% or greater ownership, which means if you are in partnership with nine other people in equal ownership, it’s considered agent-owned. Most companies will not provide E&O coverage for this,” Schwartz says.

Why not? Schwartz says it’s because most E&O claims related to property management are between the landlord and the agent. “In the case where you own the property, you’d be suing yourself, and insurance companies don’t provide a policy where you can do that.”

If your rental property is agent-owned, look for general liability insurance that could provide coverage for an injury or damage to property.