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. 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 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 properly listed on it are crucial parts of defending your rental home from unexpected problems.
As the Simi Valley 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 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.
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 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, the tenant must understand this distinction.
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 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.
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 not equivalent to listing the 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 necessary that your tenants are protected by the right kind of insurance policies and that things have been set up to keep you notified when any changes are being 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 Simi Valley. 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 Ventura County. Feel free to contact us online or by phone at 805-387-3682. We’ll be glad to answer any of your questions.
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