If you are a property owner and you aren’t listed as an “additionally interested” party in your resident’s renter’s insurance policy, you should work on having that changed. It’s crucial that every tenant you have has placed you on their list. To say someone has “additional interest” may seem to indicate that they have a financial interest. However, when it comes to renter’s insurance, that is not the case. It actually means that the person has a stake, or interest, in the property. With this definition clarified, it gives us a good picture of why the property owner should be listed as someone with “interest”. Some owners make it a requirement to have their renters carry a renter’s insurance policy. However, many of them don’t go through the policy itself to see if they’re 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.
As the owner, you have every right and reason to be informed with regard to what happens to your Melbourne Beach 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 their representative property management company is listed as an “additionally interested” in the renter’s insurance policy, it would be to your advantage. The owner or property manager will be notified if the policy is changed– which includes not renewing it. It’s very important that the owner or property manager gets this valuable information, particularly 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 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. This distinction must be made clear to the tenants to prevent any misunderstandings.
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 in charge of making the needed changes to their policy or canceling it if they aren’t renting a home anymore.
Almost 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. When you are sure that your tenant fully comprehends the distinction between the two, the process can proceed efficiently.
Explaining all the parts and points of renter’s insurance can be really time-consuming for owners. But it is crucial that your tenants have the right insurance policies and that everything is in place to keep you notified and in the loop. At Real Property Management, we handle all the details of operating a rental property, including working with tenants so that they can comply with the requirements of renter’s insurance in Melbourne Beach. Insurance is an important part of protecting your valuable investment property; make sure the execution is excellent with the help of the professionals Real Property Management Brevard. If you are interested in learning more or have additional questions, please contact us online or by phone at 321-610-8022 today.
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