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 really important that all your tenants have listed you. It would seem confusing at first because the name “additional interest” seems to mean “financial interest”. However, that is not the case. Additional interest means the people who have an interest, or stake, in a property. Knowing this, it makes perfect sense why the property owner should be listed. It is true that many owners already require their renters to have a renter’s insurance policy. However, not all have taken the precaution of actually checking the policy itself to see if they are listed correctly. Requiring both a renter’s insurance policy and being listed in it are important elements of safeguarding your rental home from the unexpected.
You, as the owner, have many reasons for wanting to be updated with what is happening to your own Kennesaw rental 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. The owner or property manager must have this valuable information, notably when these policies are paid monthly.
To be clear, just because you are the listed party in a tenant’s renter’s insurance policy, and are listed as an “additionally interested”, it doesn’t mean that you have 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. Rather, this list only gives access to information. It lets the owner verify coverage; that’s all it gives, nothing more. This distinction must be clearly explained to a tenant to avoid misunderstandings.
A tenant must also be notified that if they move, the policy will not automatically be canceled, and the name that’s listed as an “additionally interested” entity will also not be automatically taken off the policy. An owner who is listed as an “additional interest” is not authorized to make changes to the policy. This means they are unable to cancel it. The tenant is in charge of updating their policy. This means all necessary changes must be done by them, and if they stopped renting a home, they have to be the one to cancel the policy.
Nearly 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. Adding an additional interest and listing an owner or property management company as an additional insured are two different and distinct things. Ensuring that your tenant understands that these two things are different can help move the process forward without hitches.
Explaining the complex parts of renter’s insurance can be a tedious task for owners. But it is essential that your tenants are covered by the insurance policies that are right for them, and that arrangements are made to have you notified when changes are made. At Real Property Management, we take care of all the details of managing a rental property, including talking with tenants to make sure they comply with renter’s insurance requirements in Kennesaw. Insurance is an important part of protecting your valuable investment property; make sure it’s done well with the help of the experts at Real Property Management East Cobb. If you want to know more about what we can do to serve you, don’t hesitate to contact us online or call us at 770-622-5657.
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