If you are a property owner and you aren’t listed as an “additionally interested” party in your resident’s renter’s insurance policy, you should work on having that changed. You have to make sure that all your tenants have entered your name into their list. To label someone as having “additional interest” seems to mean that they have a financial interest. That is not the case when talking about renter’s insurance. What it means is that the person is interested– that is, has a stake– in the property. With this clarified meaning, it is easy to see why a property owner should be included in the list of interested persons. Many owners do require their renters to have a renter’s insurance policy but not all of them actually inspect it. Only a few owners check the policy itself to see if they are correctly 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.
Since you are the owner of the Arcata rental property, that means you have so many reasons to want to know what is happening to your own 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 correctly listed as an “additionally interested” on a renter’s insurance policy, it would benefit you. The owner or property manager will receive a notification if any changes are made to the policy, which includes letting it lapse and not renewing it. This is valuable information that needs to get to the owner or property manager. This is especially true if the 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 can’t say that the policy protects your own property. Rather, this list only grants information. It allows the owner to verify coverage; that’s all it grants, nothing more. This distinction must be clearly explained to a tenant to avoid misunderstandings.
A tenant must also know that if they change their place of residence, the policy will not automatically be canceled, and the name listed as the “additionally interested” entity will likewise not automatically be taken off. An owner who is listed down as an “additional interest” cannot, in any way, cancel the policy. They do not have the authority to make changes of any kind. The tenant is responsible for managing their policy. They should be the one to make the changes to the policy if they transfer or cancel it if they stopped renting a home.
Essentially 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 all the features of renter’s insurance can take a really long time. 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 manage all the aspects of operating a rental property, including handling the tenants to make sure they implement what is required by the renter’s insurance in Arcata. 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 Humboldt. 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 707-444-3835.
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