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. 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 accurately included in it are necessary parts in defending your rental home from unforeseeable problems.
Since you are the owner of the Big Rapids 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 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. 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 you are the listed party– as an “additionally interested”– it doesn’t mean that your tenant’s renter’s insurance policy now gives you any type of insurance coverage. As the property owner, you can’t say that the policy is there to protect your property. Instead, this type of listing is merely informational. It grants the owner the ability to verify coverage; nothing more. This distinction is important and must be explained well to a tenant to avoid any misunderstandings.
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 must be the one to make any changes to their policy or cancel it if they stopped renting a home.
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 certain that your tenant really understands the difference between the two, the process can progress efficiently.
Explaining the complex parts of renter’s insurance can be a tedious task 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 take care of all the details of managing a rental property, including talking with tenants to make sure they comply with renter’s insurance requirements in Big Rapids. 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 Investment Solutions. Please contact us online or call us at 616-419-8880 to learn more about how we can serve you.
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