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. 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 included on it are a must to protect your rental home from unforeseen problems.
Since you are the owner of the San Gabriel rental property, that means you have so many reasons to want to know what is happening to your own 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. It’s critical that the owner or property manager know this valuable information. This is even more important when these policies are paid monthly.
Despite your name being written in a tenant’s renter’s insurance policy, and is being listed as an “additionally interested”, it does not grant the listed party any type of insurance coverage. As the property owner, you can’t say that the policy protects your own property. Rather, this list only grants information. It allows the owner to verify coverage; that’s all it grants, nothing more. To avoid misunderstandings, this distinction must be explained to the tenant.
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” cannot change anything in the policy; they cannot cancel it. The tenant must be the one to make any changes to their policy or cancel it if they stopped renting a home.
Practically 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 certain that your tenant really understands the difference between the two, the process can progress efficiently.
Explaining all the details of renter’s insurance can take a 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 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 San Gabriel. Insurance is an important part of protecting your valuable investment property; make sure that this is done perfectly with the help of the experts at Real Property Management East San Gabriel Valley. Please contact us online or call us at 626-600-2884 to learn more about how we can serve you.
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