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. 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”. 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.
You, as the owner, have many reasons for wanting to be updated with what is happening to your own Cumming 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 properly listed as an “additionally interested” on a renter’s insurance policy, it would help you. If there are changes made to the policy– which includes the failure to renew it– the owner or property manager is notified. 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 your name appears in the tenant’s renter’s insurance policy, and is included in the list of “additionally interested” it does not mean that you, the listed party, have been granted any type of insurance coverage. As the property owner, you can’t say that the policy protects your own property. Rather, this list only gives access to information. It lets the owner verify coverage; that’s all it gives, nothing more. This distinction must be clearly explained to a tenant to avoid misunderstandings.
A tenant must also be notified that if they move, the policy will not automatically be canceled, and the name that’s listed as an “additionally interested” entity will also not be automatically taken off the policy. 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 is in charge of updating their policy. This means all necessary changes must be done by them, and if they stopped renting a home, they have to be the one to cancel the policy.
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. When you are confident that your tenant appreciates the difference between these two things, the process can move forward efficiently.
Explaining all the features of renter’s insurance can take a really long time. 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 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 Cumming. 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 Executives Greater Atlanta. To know more about what we can do for you, please contact us online or give us a ring at 678-504-8580.
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