Regarding property owners, if you find out you are not listed as an additionally interested party in your resident’s renter’s insurance policy, we strongly advise that you should be. It is necessary to ensure that all your tenants do so. This is because of the fact that, notwithstanding the name, additional interest does not relate to financial interest, but rather those who have a matter, or stake, in a property. Even though many owners obligate their renters to get a renter’s insurance policy, not all have employed the next step to warrant that they are listed correctly on the policy itself. Insisting for both a renter’s insurance policy and being listed on it are significant factors for sheltering your rental home from the unpredictable.
As the owner, you have a lot of solid reasons for demanding to be made aware of what is going on related to your Pasadena 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 property management company is listed as an additionally interested party on a renter’s insurance policy, that owner or property manager will then be informed of when or if there be any changes made to that policy, especially any non-compliance to renew it. This is valuable information that any owner or property manager wants to know about, especially since these policies are paid monthly.
But even though you are included on a tenant’s renter’s insurance policy, being listed as an additionally interested entity does not give the listed party any kind of insurance coverage. As the owner, you cannot apply the policy to make claims or safeguard your own property. Instead, being listed in this manner just gives you access to much-needed information; it helps the owner to verify coverage, no more than that. This difference is an important one to explain to a tenant to keep any misperceptions and conflict from arising.
A tenant also has to comprehend clearly that if he or she transfers, the policy will not automatically be canceled nor will the name of the additionally interested entity be taken out. An owner listed as an additional interest cannot bring on amendments to the policy, neither can they cancel it. The tenant alone is answerable to make any crucial changes or nullify their policy if they are not anymore renting a home.
Most of the 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. Including an additional interest is very different from listing an owner or property management company as an additional insured. Determining that your tenant knows this major difference between the two can move this process forward so much faster and smoother.
Clearly explaining the technicalities of renter’s insurance can be a time-wasting concern for owners. But it is necessary that your tenants have the insurance policies that are just the right fit for them and measures have been taken to keep you always informed. At Real Property Management, we take charge of all of the important elements of running a rental property, working closely together with tenants to nail down that they are kept in compliance as per renter’s insurance standards in Pasadena. Insurance is an important part of protecting your valuable investment property; know for certain it’s fulfilled accurately with the help of the professionals at Real Property Management Fairmate. For more advantageous information, please contact us online or call us at 626-691-9749.
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