Six months ago, we launched PolicyProof to solve a problem property managers know all too well: tracking and verifying landlord insurance. Property managers have long been left to manually chase down documents, flag errors by hand, and hope that what’s submitted meets their requirements.
After analyzing six months of data across thousands of policies in our partner network, we came to a conclusion. Insurance noncompliance isn’t the exception. It’s the norm.
Why Landlord Insurance Policies Get Rejected (And What It Means for Property Managers)
Our early PolicyProof data shows that over 53% of homeowner-submitted insurance policies are noncompliant, leaving more than half of managed properties exposed to legal and financial risk.
For one partner alone, over 120 policies were flagged in just a few months. These aren’t rare edge cases; they’re everyday oversights that can carry serious consequences.
What are the most common compliance failures PolicyProof found?
- Missing additional insured – The property manager isn’t listed on the policy.
- Coverage limits are too low – Liability thresholds don’t meet property management requirements.
- Invalid or outdated documents – Expired coverage, wrong policy types, or missing pages.
Other frequent issues we see include:
- Wrong or missing property address
- Homeowner’s insurance was submitted instead of landlord coverage
- Policy inactive at the time of submission
These may seem like minor errors, but they’re the kind that can leave property managers exposed when it matters most. Because when a claim is denied or a coverage gap is uncovered, it’s the PM, not only the property owner, who’s left answering for it.
The Real Cost of Insurance Noncompliance for Property Managers
Each rejected policy carries real consequences of adding liability, slowing teams down, and introducing avoidable risk.
Noncompliance shows up often, but it doesn’t have to derail operations. With the right tools, it becomes a manageable part of the workflow. When it’s missed, though, property managers face:
- Coverage gaps that can result in out-of-pocket claims
- Time lost chasing documents and owner responses
- Broken audit trails and compliance reporting challenges
- Tension with owners that affects trust and renewal rates
Left unresolved, these issues can affect more than just back-office operations; they influence growth, reputation, and long-term stability.
How Long PolicyProof Takes to Fix Insurance Compliance Issues
The good news? Most issues don’t linger.
With PolicyProof in place, over 66% of rejected policies are cured within just 4 days. That means owners are taking fast action, and when they don’t, Obie’s Master General Liability coverage automatically fills the gap.
For some of our top-performing partners, we’ve helped cure up to 90% of rejected policies.
No more guessing. No more exposure. Just confidence.
How PolicyProof Helps Property Managers Automate Insurance Compliance
Property managers shouldn’t have to play insurance detective. And now, they don’t. PolicyProof automatically verifies owner-submitted insurance, flags noncompliant policies, and gives owners the opportunity to correct issues, all before risk becomes real. If no fix comes through? We step in, ensuring the property and PM remain protected.
Six months in, the solution is working exactly as designed. It’s reducing liability, saving time, and making compliance a seamless part of the property manager's workflow.
Want to protect your portfolio without the paperwork? Learn more about PolicyProof at obieinsurance.com/property-managers.
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