Renters Ins; LL listed as Addl Interest, not notified of cancel

[Brian Hinkle]

Hello,

I am running into something right now that I didn't think I would have to deal with. Each of our leases indicate that the property owner must be listed as additional insured. Some insurance companies do not allow this, so they list us as an Additionally interested party. We are fine with this outcome because we basically just need to know whether or not the policy has been cancelled/renewed.  

I was under the impression that it is the insurer's responsibility to notify us that the policy has been cancelled due to non-payment. Once we get word of cancellation, we can implement tenant liability insurance (where the property is covered, but their belongings are not). 

A resident had a small kitchen fire in late December that would absolutely be covered by renters insurance, but she apparently let her coverage lapse in October. The insurer never contacted us to let us know of the cancellation, so the costs of the damage will be out of pocket as the damages are not higher than the deductible for our large liability policy. I understand that I have every right to go after the resident for payment, but I want to know if I have any leg to stand on when it comes to the insurer.

I appreciate your feedback!

Sincerely,

BH

[Greg M.]

First off, you want to be listed as an Additional Interest, NOT as an Additional Insured. They are very very very different. Search the differences if you don't already know what they are, and no offense, but I suspect that you'd don't know the differences if you're asking to be listed as an Additional Insured.

Secondly, unless your tenant provides your mailing address when setting up the policy, the insurance carrier will use the tenants address as the mailing address for the notices. Many tenants will just hand you a copy of their insurance policy with you listed as Additional Interest. This is not good enough. Your mailing address should be on it and you should receive a copy in the mail. They may have mailed notice to you at the tenants address.

Lastly, I don't know about your state, but in California an insurance carrier is not legally required to notify an Additional Insured of policy cancellation.