If you are a property owner, you should be in your resident’s renter’s insurance policy, listed as an “additionally interested” party. If you aren’t in it yet, you need to work on changing that. It’s vital that all your tenants have that list and your name is on it. It would seem confusing at first because the name “additional interest” seems to mean “financial interest”. However, that is not the case. Additional interest means the people who have an interest, or stake, in a property. Knowing this, it makes perfect sense why the property owner should be listed. Some owners already require their renters to carry a renter’s insurance policy. While this is a step in the right direction, many of them fail to check the policy itself to see if they are properly listed on it. Requiring both a renter’s insurance policy and being correctly included in it are vital steps to guarding your rental home against unforeseen issues.
Since you are the owner, you have so many reasons why you’d want to be informed with what is happening to your Kissimmee 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 correctly listed as an “additionally interested” on a renter’s insurance policy, it would benefit you. The owner or property manager will receive a notification if any changes are made to the policy, which includes letting it lapse and not renewing it. The owner or property manager must have this valuable information, notably 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 point to that policy and claim that your property is now protected. Rather, being listed like this only gives access to information. It gives the owner the authority to verify coverage; nothing else. To avoid misunderstandings, this distinction must be explained to the tenant.
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” can’t cancel the policy since they have not been given the authority to make any changes to 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.
Essentially 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. Ensuring that your tenant understands that these two things are different can help move the process forward without hitches.
Explaining all the details of renter’s insurance can take a long time. But it is essential that your tenants are covered by the insurance policies that are right for them, and that arrangements are made to have you notified when 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 Kissimmee. Insurance is an important part of protecting your valuable investment property; make sure it’s done well with the help of the experts at Real Property Management South Orlando. If you are interested in learning more or have additional questions, please contact us online or by phone at 407-982-2000 today.
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