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 very important that your tenants, all of them, have placed you on 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 make sure that their renters have a renter’s insurance policy. But a lot of them don’t review it. They wouldn’t know if the policies carried actually have their names listed on it correctly. Requiring both a renter’s insurance policy and being included on it are a must to protect your rental home from unforeseen problems.
As the Dublin 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. 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, 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 can’t say that the policy protects your own property. Rather, being listed like this only gives access to information. It gives the owner the authority to verify coverage; nothing else. This distinction is important and must be explained well to a tenant to avoid any 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 listed as an “additional interest” does not have the power to make changes to the policy; they are not able to cancel it. 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.
Virtually 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. Ensuring that your tenant understands that these two things are different can help move the process forward without a hitch.
Explaining all the features of renter’s insurance can take a really long 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 handle all the details of operating a rental property, including working with tenants so that they can comply with the requirements of renter’s insurance in Dublin. 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 One. To know more about what we can do for you, please contact us online or give us a ring at 925-794-8339.
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