If you are a property owner, you should be listed as an “additionally interested” party on your resident’s renter’s insurance policy. If your name isn’t on the list, you should have it changed. It’s vital that all your tenants have that list and your name is on it. The label “additional interest” may seem to mean a person with a financial interest. However, the proper definition of that label would be person or persons who have a stake, or interest, in a property. With this clarification, it shows us the real reason why the property owner must be listed as someone “interested”. Some owners already require their renters to carry a renter’s insurance policy. While this is a step in the right direction, many of them fail to check the policy itself to see if they are properly listed on it. Requiring both a renter’s insurance policy and being properly listed on it are crucial parts of defending your rental home from unexpected problems.
As the Redmond rental property owner, you have all the reasons to be informed with what is happening to your property. This is what is listed as an additionally interested in your tenant’s renter’s insurance policy will do. When a property owner or property management company is placed down as an “additionally interested” on a renter’s insurance policy, it benefits you. For instance, let’s say the renter changes the policy or lets it lapse– maybe they forgot to renew it– you, as an “additionally interested” person will be notified by the insurance company. It’s very important that the owner or property manager gets this valuable information, particularly when these policies are paid monthly.
To be clear, although you are the listed party– as an “additionally interested”– it doesn’t mean that your tenant’s renter’s insurance policy now gives you any type of insurance coverage. As the property owner, you cannot use that policy to make claims that your own property is now insured and protected. Instead, this type of listing is merely informational. It grants the owner the ability to verify coverage; nothing more. This distinction must be made clear to the tenants to prevent any misunderstandings.
A tenant also needs to understand that if they transfer to another home, the policy will not automatically be canceled nor will the names of the “additionally interested” entities be changed or removed. An owner listed as an “additional interest” can’t cancel the policy since they have not been given the authority to make any changes to it. The tenant is obligated to make the necessary changes or cancel their policy if they’ve transferred to a different home or stopped renting.
Almost all insurance companies who offer renters insurance will list an additionally interested in the policy upon request. If your tenant tries to avoid adding you on their policy by claiming their insurance company will not, it may be because they are not asking for the correct action. Placing an additional interest is different from placing the owner or property management company as an additional insured. Seeing to it that your tenant knows that there is a difference between the two can really speed up the process and move things forward efficiently.
Explaining all the features of renter’s insurance can take a really long time. But it is necessary that your tenants are protected by the right kind of insurance policies and that things have been set up to keep you notified when any changes are being made. At Real Property Management, we take care of all of the details of running a rental property, including speaking with tenants to ensure their compliance with renter’s insurance requirements in Redmond. Insurance is an important part of protecting your valuable investment property; make sure the tasks are done right with the help of the professionals at Real Property Management Eclipse. To know more about what we can do for you, please contact us online or give us a ring at 425-209-0252.
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