Tenant insurance underwritten with landlords name

Member since 2021 · 388 posts · 277 votes

All my tenants are required to have tenant insurance. They have a liability for a full value of my property plus I make them have personal property for $30k.
is it advisable to have the insurance underwritten with tenant and my name on it?

I believe if something happens and the tenant only has it in their name I am unable to get the proceeds because the check will be written to them.
Additionally , the coverage should satisfy my mortgage company where I don’t have to buy a separate landlord policy.
what say you?

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Rod HanksBusiness Member

Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes

Quote from @Owen Rosen:

Quote from @Rod Hanks:

It’s a good idea to have the insurance policy include both the tenant’s name and yours as additional insured. This ensures that any payout for damage or liability can be processed more smoothly, and it can help protect your interests if something happens on the property.

However, tenant insurance is typically intended to cover personal property and liability for the tenant, not the building itself. For full protection, your mortgage company will likely still require you to carry a landlord or dwelling policy. These policies cover the structure and additional liabilities related to your property that the tenant’s insurance doesn’t.

Rod, are you sure about this? Many insurance companies do not allow adding a landlord as additional insured. Sometimes agents do it because they don't know any better, are order takers, or make a mistake. Additional interest? Absolutely.

If a landlord is listed as additional insured (rather than additional interest) they cannot make a claim against one another's liability policy for damages - it could completely jeopardize the coverage they think they're making it easier to get. This isn't good for the landlord or tenant.

You are right 100% Owen, the landlord will be listed as additional interested party NOT additional insured.

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Rod HanksBusiness Member
Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
1y
It’s a good idea to have the insurance policy include both the tenant’s name and yours as additional insured. This ensures that any payout for damage or liability can be processed more smoothly, and it can help protect your interests if something happens on the property.

However, tenant insurance is typically intended to cover personal property and liability for the tenant, not the building itself. For full protection, your mortgage company will likely still require you to carry a landlord or dwelling policy. These policies cover the structure and additional liabilities related to your property that the tenant’s insurance doesn’t.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Kar Sun:

This isn't right.
The tenant should have liability insurance, which protects against accidents like a kitchen fire, a slip-and-fall, etc. It usually doesn't cover for full replacement of your property. And you can't legally dictate how much they carry for personal belongings.
You should require the tenant to carry $100,000 liability. Whether they have personal property protection, and how much, should be left up them. Then the tenant should be required to add you as "Additional Insured" which protects you under their policy. If their guest falls down the stairs and breaks a leg, you would be covered under the tenant's policy and wouldn't need to file with our insurer. As additional insured you will also receive notice if the tenant ever changes their policy or cancels it.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 676 posts · 259 votes
1y
Quote from @Kar Sun:

All my tenants are required to have tenant insurance. They have a liability for a full value of my property plus I make them have personal property for $30k.
is it advisable to have the insurance underwritten with tenant and my name on it?

I believe if something happens and the tenant only has it in their name I am unable to get the proceeds because the check will be written to them.
Additionally , the coverage should satisfy my mortgage company where I don’t have to buy a separate landlord policy.
what say you?

Your tenant can get renters insurance in their name - not yours. You aren't the insured in this case.
Renters insurance does not cover the physical damage of the real property - it covers the tenants personal property and other things. Landlord insurance covers the dwelling/property.
Renters insurance has liability coverage which might provide you coverage if your tenant is negligent or liable for an accident/damages, etc.
You can/should have your tenant list you as an "Additional Interest" on their policy. This is different from "Additional Insured." Landlords should not be listed as an "Additional Insured" as that implies they have insurable interest (they don't) and have authority to file claims or receive coverage (such as in a lawsuit) from the renters insurance. This in actuality is not correct
As an Additional Interest, you will receive notifications about the status of the policy to make sure it remains in force. Similar to a mortgage company on a landlord policy.
Renters insurance will not under any circumstances "satisfy" your mortgage company.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 676 posts · 259 votes
1y
Quote from @Rod Hanks:

It’s a good idea to have the insurance policy include both the tenant’s name and yours as additional insured. This ensures that any payout for damage or liability can be processed more smoothly, and it can help protect your interests if something happens on the property.

However, tenant insurance is typically intended to cover personal property and liability for the tenant, not the building itself. For full protection, your mortgage company will likely still require you to carry a landlord or dwelling policy. These policies cover the structure and additional liabilities related to your property that the tenant’s insurance doesn’t.

Rod, are you sure about this? Many insurance companies do not allow adding a landlord as additional insured. Sometimes agents do it because they don't know any better, are order takers, or make a mistake. Additional interest? Absolutely.
If a landlord is listed as additional insured (rather than additional interest) they cannot make a claim against one another's liability policy for damages - it could completely jeopardize the coverage they think they're making it easier to get. This isn't good for the landlord or tenant.

Royal Oath Insurance Group4.9203 Reviews
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Rod HanksBusiness Member
Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
1y
Quote from @Owen Rosen:

Quote from @Rod Hanks:

It’s a good idea to have the insurance policy include both the tenant’s name and yours as additional insured. This ensures that any payout for damage or liability can be processed more smoothly, and it can help protect your interests if something happens on the property.

However, tenant insurance is typically intended to cover personal property and liability for the tenant, not the building itself. For full protection, your mortgage company will likely still require you to carry a landlord or dwelling policy. These policies cover the structure and additional liabilities related to your property that the tenant’s insurance doesn’t.

Rod, are you sure about this? Many insurance companies do not allow adding a landlord as additional insured. Sometimes agents do it because they don't know any better, are order takers, or make a mistake. Additional interest? Absolutely.
If a landlord is listed as additional insured (rather than additional interest) they cannot make a claim against one another's liability policy for damages - it could completely jeopardize the coverage they think they're making it easier to get. This isn't good for the landlord or tenant.

You are right 100% Owen, the landlord will be listed as additional interested party NOT additional insured.
Rod Hanks Insurance4.9153 Reviews
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