Tenant's Renter's Insurance- Interested party same as additional insured for me?

Question

Hello!  I have a new tenant moving into my California rental home in about 24 hours.  On his " Renter's Policy Declaration" with Lemonade Insurance, he has me listed as an "interested party".  I asked him to list me as an "additional insured party". Are these 2 terms the same thing or should I try to get it changed I want to be sure the company tells me if he stops paying the premium. Also, if he causes a fire or other covered risk, I want to be sure his insurance is the main one to pay, not mine.  Thanks!

Alex L. · Answer

You as the landlord can't (or rather shouldn't) be added to the renter's policy as an additional insured party because the insurance policy is not yours. The insured is who is covered by the policy -- in this situation, the renter is the insured, and the policy covers their liability exposure (in this situation, the liability exposure is renting your property). You as the landlord should be listed as an "interested party," which is exactly what it sounds like -- someone who has an interest in the policy. This should allow you to receive a copy of the policy and any information relating to it. Whether or not you'd be notified if the tenant stops paying the premium, however, is dependent upon the insurance company's notification procedures, and you'll have to ask them directly how they work for interested parties.

Nathan Gesner · Answer

No, they are not the same.

"Additional Interest" means you will receive a copy of their declaration page and you'll be notified if they change/cancel their policy. It's just a way of monitoring to ensure they maintain insurance.

"Additional Insured" means you are covered by their policy when there is a liability claim. Say a guest comes to the house, trips on their kid's skateboard, breaks their back, and decides to sue. They would likely sue the Tenant and the Landlord. In this case, the Tenant's policy would protect you as the primary, then your insurance as the secondary.

Nathan Gesner · Answer

I require this for every property I manage. I have over 150 different owners and none of them have had a problem adding us as Additional Insured. I think there was one company that questioned it, but it was because they were a new agent.

I am not aware of any insurance provider charging extra for this.

Tricia O'Brien · Answer

@Nathan Gesner

Does it usually cost the tenant more if the landlord is listed as an additional insured as compared to being an interested party?  Do you usually insist on this in properties that you own or for your clients where you manage their properties? Thanks 😊

Tenant's Renter's Insurance- Interested party same as additional insured for me?

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