For property owners, you should be listed on your resident’s renter’s insurance policy as an “additionally interested”. If you aren’t, you should change that. It’s really important that all your tenants have listed you. 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”. It is true that many owners already require their renters to have a renter’s insurance policy. However, not all have taken the precaution of actually checking the policy itself to see if they are listed correctly. Requiring both a renter’s insurance policy and being included on it are a must to protect your rental home from unforeseen problems.
As a Playa Vista rental property owner, you have all the reasons to be informed with what is happening to your 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 placed down as an “additionally interested” on a renter’s insurance policy, it benefits you. For instance, let’s say the renter changes the policy or lets it lapse– maybe they forgot to renew it– you, as an “additionally interested” person will be notified by the insurance company. It’s critical that the owner or property manager know this valuable information. This is even more important when these policies are paid monthly.
To be clear, just because you are the listed party in a tenant’s renter’s insurance policy, and are listed as an “additionally interested”, it doesn’t mean that you have any type of insurance coverage. As the property owner, you cannot use that policy to make claims that your own property is now insured and protected. 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 must also be informed that if they transfer to another place, the policy will not automatically be canceled, and the name of the “additionally interested” entity will not automatically be removed. An owner listed as an “additional interest” does not have the power to make changes to the policy; they are not able to cancel it. The tenant is obligated to make the necessary changes or cancel their policy if they’ve transferred to a different home or stopped renting.
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. Placing an additional interest is different from placing the owner or property management company as an additional insured. Seeing to it that your tenant knows that there is a difference between the two can really speed up the process and move things forward efficiently.
Explaining all the intricate details of renter’s insurance can eat up so much of your time. But it is necessary that your tenants are protected by the right kind of insurance policies and that things have been set up to keep you notified when any changes are being made. At Real Property Management, we manage all of the aspects of running a rental property, including dealing with tenants to make sure they agree with the renter’s insurance requirements in Playa Vista. Insurance is an important part of protecting your valuable investment property; make sure it’s done correctly with the services of Real Property Management California Coast. If you want to know more about what we can do to serve you, don’t hesitate to contact us online or call us at 310-535-2150.
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