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. It would seem confusing at first because the name “additional interest” seems to mean “financial interest”. However, that is not the case. Additional interest means the people who have an interest, or stake, in a property. Knowing this, it makes perfect sense why the property owner should be listed. 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 accurately included in it are necessary parts in defending your rental home from unforeseeable problems.
Since you are the owner, you have so many reasons why you’d want to be informed with what is happening to your The Woodlands 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. The owner or property manager must have this valuable information, notably 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 cannot use that policy to make claims that your own property is now insured and protected. Rather, being listed like this only gives access to information. It gives the owner the authority to verify coverage; nothing else. 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” can’t cancel the policy since they have not been given the authority to make any changes to 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. Adding an additional interest is not equivalent to listing the 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 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 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 The Woodlands. 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 Republic. Feel free to contact us online or by phone at 281-362-5001. We’ll be glad to answer any of your questions.
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