I’m moving into a new apartment and my property manager wants me to add a renters insurance interested party. What does that mean? What rights does it give them? Will my renters insurance company do it?
Great question! The short answer is yes, your renters insurance company will probably do it, with a very few limited exceptions. But, let’s dig deeper…
What Is A Renters Insurance Interested Party?
What is an interested party on renters insurance? Many people ask this because their landlords have asked to be listed on their renters insurance. Does this give them any coverage? Find out!
A renters insurance interested party is anyone that has an interest in the policy and whom you designate to receive policy notifications. Apartment communities use it to make sure that they get copies of renewals and cancellation notices. It’s strictly informational, and very different from an additional insured on renters insurance. It doesn’t confer any coverage, nor any rights to make changes to the policy. It also doesn’t impact your rights to take legal action against anyone. It is also sometimes referred to as an additional interest.
An interested party is not permitted to take any action that would change coverage or the policy itself. They only receive information about the policy. You waive your right to privacy by giving them a copy of the declarations page to some degree, so there is no privacy issue with regards to this endorsement.
A renters insurance interested party will be notified if they are removed from the policy, or if changes are made which bring the policy out of compliance with their requirements.
Your landlord requires renters insurance, and to be listed as a renters insurance interested party. They may also give you the option of an insurance waiver program. The latter wouldn’t give you any actual coverage, so we’ll disregard it for these purposes. Listing your landlord as an interested party on your renters insurance gives them one thing, and only one thing: Information about the status of the policy. If a cancellation notice goes out to you, they get a copy. If a renewal notice goes out to you, they get a copy.
What the landlord does not receive as an interested party is any sort of coverage. They are in no way insured under the policy, nor do they have the ability to make any material change to the policy. That would be an “additional insured” and that’s not something you or they generally want.
By listing a renters insurance interested party instead of a renters insurance additional insured, you preserve your right to take action against them for something that’s potentially covered under the policy. You’re not giving them any additional rights. Take in to consideration that your landlord already has all the coverage they need under the liability coverage on your policy. If you were to cause property damage to them, they can file a liability claim just like any other third party could. That’s not affected in any way by the interested party designation.
Why It Matters
Listing your landlord as a renters insurance interested party makes sure that they get the documentation they need about your policy. It also prevents you from having to take copies of the policy down to the leasing office at every renewal, or to provide them with a reinstatement notice or similar document. That can be a real time saver in some cases.
Remember, you’re not giving them the keys to your renters insurance policy, you’re just letting them take a look inside through the rolled up windows.