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 very important that your tenants, all of them, have placed you on their list. It may seem that the label “additional interest” would mean someone with a financial interest. In fact, it doesn’t. It refers to persons who have a stake (or interest) in the property. With this clarified definition, it makes sense why the property owner should be on that list. Many owners make sure that their renters have a renter’s insurance policy. But a lot of them don’t review it. They wouldn’t know if the policies carried actually have their names listed on it correctly. Requiring both a renter’s insurance policy and being listed in it are important elements of safeguarding your rental home from the unexpected.
As the owner, you have every right and reason to be informed with regard to what happens to your Capitol Hill 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. This is valuable information that needs to get to the owner or property manager. This is especially true if the 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 owner, you can’t file claims upon that policy saying that it protects your property. It doesn’t. Rather, this list only grants information. It allows the owner to verify coverage; that’s all it grants, nothing more. To avoid misunderstandings, the tenant must understand this distinction.
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 is in charge of making the needed changes to their policy or canceling it if they aren’t renting a home anymore.
Nearly 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 and listing an owner or property management company as an additional insured are two different and distinct things. 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 important that your tenants are covered with the right insurance policies and that arrangements have been made to keep you in the loop when any changes are made. 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 Capitol Hill. 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 DC Metro. Feel free to contact us online or by phone at 202-269-0303. We’ll be glad to answer any of your questions.
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