Why does your landlord need additional interest coverage on your renters insurance policy? First, let us put your fears to rest: “additional interest” has nothing to do with finance, interest, or anything that costs you money. You probably landed on this page because your landlord requires additional interest notification and you don’t know what this means.
Why does my landlord need additional interest?
The simple answer is because they need to be notified of any changes or nonrenewals on your policy. Most things an apartment community requires of their renters aren’t difficult to verify. For example, you are required to pay your rent on time, and it’s pretty easy to confirm if you have or not. But for a standard renters insurance policy, there is no built-in way to verify coverage. Your landlord needs additional interest on the policy because the policy language requires that the landlord is notified if the policy lapses or cancels.
The title of “additional interest” affords no coverage to the listed party. The named additional interest can’t make claims against your policy, other than a liability claim that anyone you may have injured can make. By being listed on the policy, the additional interest is assured that they have the most current policy status at all times. Property managers use this to track who is and is not in compliance with the requirement.
So when I move, the landlord or management office will cancel my policy for me?
Not so fast. Just because the landlord needs additional interest protection doesn’t mean that the landlord has any rights over the policy. The landlord can’t cancel it and is unable to make any changes.
My landlord needs additional interest, but my agent won’t add it!
There are very few companies out there who don’t provide for a renters insurance additional interest. Often, though, this comes down to a misunderstanding. It would be inappropriate to list the apartment as an additional insured, but that is a completely different thing, and not what you need. Many times people confuse additional interest with additional insured because they sound so similar. Additional insured would confer coverage, while additional interest does not. If your agent pushes back, explain that it’s for notification – not for coverage. That should clarify things.
The better solution, however, is to work with an agency that understands the needs of tenants and has built its entire business model around insuring tenants. Effective Coverage, The Insurance Experts For Renters, is a premier provider of renters insurance with a national presence. Your partners at Effective Coverage are familiar with what happens when a landlord needs additional interest protection, as well as the reasons for it. This enables you to get a policy with the protection you need that is also compliant with your lease obligations. It only takes a moment to call or click today for a no-obligation renters insurance review. Effective Coverage handles other lines of insurance for renters as well, and often significant discounts are available when purchasing multiple policies from the same insurance company.
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