An matter to party is besides sometimes called an “ extra concern ” or “ third-party designee. ” Being named as an interest party does n’t allow your landlord to make a claim on or make changes to your renters insurance — it only entitles them to know the condition of your policy .
Why do landlords require you to list them as interested parties on renters insurance?
It ‘s increasingly coarse for landlords to require tenants to purchase renters insurance, as it limits the fiscal liability of both the landlord and the tenant in case an accident happen. If you have to buy renters indemnity as a condition of your lease, noting your landlord as an concern party will provide them with proof that you ‘ve purchased a sufficient come of renters insurance coverage .
How do you add a renters insurance interested party?
Noting your landlord as an interest party on your renters indemnity policy is square, though the process may differ slenderly by insurance party. Most renters policy companies, including State Farm, Geico and Lemonade, allow you to add an concern party on-line. You ‘ll just need to provide your landlord ‘s liaison information, including their name, address and electronic mail. Your landlord will get a description of your renters policy via electronic mail or regular mail shortly after you add them as an matter to party.
Adding a renters indemnity concern party is typically free. If you find a renters indemnity ship’s company that charges more than a dollar or two per calendar month to add an concerned party, consider looking elsewhere for a better batch on renters policy, as even a few dollars per month will add up to a significant increase in the cost of indemnity .
The difference between additional interest and additional insured
“ extra concerned ” and “ extra guarantee ” are two similar-sounding terms related to renters policy that have very different meanings. “ extra matter to ” is merely another name for an concerned party — person who wants to know whether you have renters insurance. It ‘s park to add your landlord as an extra interest.
“ extra insured, ” on the other hand, is another person covered by your policy, and adding your landlord as an additional insured is a very bad idea — for you, your landlord and your policy company. In fact, most renters indemnity companies wo n’t let you list your landlord as an extra insured at all .
If you add person to your policy as an extra guarantee, it means they are protected by your policy ‘s indebtedness coverage. You might normally add your spouse or your roommate as an extra guarantee so that you ‘re all protected under the lapp policy. If you add your roommate to your policy and a visitor is injured by your roommate ‘s pawl, the indebtedness policy would cover any damages.
however, adding your landlord as an extra insured makes it impossible for either of you to make a claim against one another ‘s liability policies for damages .
For example, if defective wire causes a open fire in your apartment, you and your insurance company would normally sue your landlord and their policy company to cover the loss. But if you and your landlord are protected by the same policy, you ‘re prevented from suing your landlord — it ‘d be like suing yourself or your spouse. And this works both ways : If you ‘re the one creditworthy for the fire, the landlord would be unable to sue you for damages because you ‘re both protected by the like policy .
If your landlord requests you to add them as an “ extra see ” to your renters policy, they likely mean “ extra interested. ” Clarify what they mean before adding them as an extra insure under your renters policy .