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 crucial that every tenant you have has placed you on their list. It may seem that the label “additional interest” would mean someone with a financial interest. In fact, it doesn’t. It refers to persons who have a stake (or interest) in the property. With this clarified definition, it makes sense why the property owner should be on that list. 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.
You, as the owner, have many reasons for wanting to be updated with what is happening to your own Brandywine 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. It’s very important that the owner or property manager gets this valuable information, particularly when these policies are paid monthly.
Even though your name appears in the tenant’s renter’s insurance policy as an “additionally interested” party, it does not mean that you, the listed party, get any type of insurance coverage. As the property owner, you can’t say that the policy is there to protect your property. Rather, this listing is informational in nature. It gives the owner the right to verify coverage; that’s all it does, nothing more. To avoid misunderstandings, the tenant must understand this distinction.
A tenant also needs to be aware that if they move, the policy will not automatically be canceled nor will the name of the “additionally interested” entity be taken off. An owner listed as an “additional interest” cannot change anything in the policy; they cannot cancel it. The tenant is in charge of making the needed changes to their policy or canceling it if they aren’t renting a home anymore.
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 the owner or property management company as an additional insured is different from adding additional interest. 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 the complex parts of renter’s insurance can be a tedious task for owners. But it is critical that your tenants have the right insurance policies covering them and that you will be kept in the loop whenever changes are 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 Brandywine. Insurance is an important part of protecting your valuable investment property; make sure it’s done correctly with the services of Real Property Management Gold. Please contact us online or call us at 301-392-2172 to learn more about how we can serve you.
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