Property owners, you should be part of the list of “additionally interested” parties on your resident’s renter’s insurance policy. If you’re not on that list, you need to change that. It’s very important that your tenants, all of them, have placed you on their list. 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 make it a requirement to have their renters carry a renter’s insurance policy. However, many of them don’t go through the policy itself to see if they’re listed on it. Requiring both a renter’s insurance policy and being listed in it are important elements of safeguarding your rental home from the unexpected.
As the owner, you have every right and reason to be informed with regard to what happens to your Morrisville rental property. This is what is listed as an additionally interested in your tenant’s renter’s insurance policy will do. When the property owner or the property management company representing them is listed in the renter’s insurance policy as an “additionally interested”, it would be very beneficial. The owner or property manager will be given notice if or when there are any changes made to that policy– including the failure to renew it. This valuable information must be given to the owner or property manager. It’s very important for them to know this especially 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 owner, you can’t file claims upon that policy saying that it protects your property. It doesn’t. Instead, this type of listing is merely informational. It grants the owner the ability to verify coverage; nothing more. To avoid misunderstandings, this distinction must be explained to the tenant.
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 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 must be the one to make any changes to their policy or cancel it if they stopped renting a home.
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. Adding an additional interest is different from listing an owner or property management company as an additional insured. When you are confident that your tenant appreciates the difference between these two things, the process can move forward efficiently.
Explaining all the intricate details of renter’s insurance can eat up so much of your time. But it is important that your tenants are covered with the right insurance policies and that arrangements have been made to keep you in the loop when any 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 Morrisville. 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 Raleigh. If you are interested in learning more or have additional questions, please contact us online or by phone at 919-481-0008 today.
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