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. You have to make sure that all your tenants have entered your name into 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 do require their renters to have a renter’s insurance policy but not all of them actually inspect it. Only a few owners check the policy itself to see if they are correctly listed on it. Requiring both a renter’s insurance policy and being included on it are a must to protect your rental home from unforeseen problems.
Since you are the owner, you have so many reasons why you’d want to be informed with what is happening to your Milwaukee rental 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. The owner or property manager must have this valuable information, notably when these policies are paid monthly.
Even though your name appears in the tenant’s renter’s insurance policy as an “additionally interested” party, it does not mean that you, the listed party, get any type of insurance coverage. As the property owner, you can’t say that the policy is there to protect your property. Rather, being listed like this only gives access to information. It gives the owner the authority to verify coverage; nothing else. 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 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.
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 confident that your tenant appreciates the difference between these two things, the process can move forward efficiently.
Explaining all the parts and points of renter’s insurance can be really time-consuming for owners. But it is essential that your tenants are covered by the insurance policies that are right for them, and that arrangements are made to have you notified when changes are 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 Milwaukee. 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 Greater Milwaukee. If you are interested in learning more or have additional questions, please contact us online or by phone at 262-309-6961 today.
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