All Forum Posts by: Robert Cummings

I set out to get these questions answered ..

1. Which is better, additionally insured or additional interest, for the landlord.

2. Would there be a conflict of interest if the tenant starts a fire.

Subrogation allows my insurance to go after the tenant in an at fault situation. Which means they would go after the renters insurance company, and I am on the renters insurance policy.  

 I have been calling insurance companies that are both national and regional.  I also contacted the insurance commissioners office in Washington State.   There are many insurers that will not do additionally insured coverage.  I don't know if I can list the names of the companies I contacted regarding who will or won't.  Moderator please inform me.

@Joe Cummings  is correct it does cost a little more depending on the insuring company.  But the question is which is better?  Additionally insured is better for the landlord, though it does mean if your tenant has a small claim and they receive a check your name will be on the check. But there is no conflict for your insurance company  Additional interest is more common, would be easier for the tenant to get coverage (faster also).  Yet the only good thing about it is that it notifies the landlord if the policy lapses.  But not always and not always soon enough. 

@Account Closed

 I learn something new all the time, at least I try to.  I thought that type of coverage was standard.  I will talk with a company that specializes in renters insurance and see what type policy is typical.  I'll post what I learn at that time.  Thanks Sue Kelly, the more i learn the more I need to learn. 

Ok, @Joe Cummings

 I didn't know what the term"accord forms" meant.  So when you say it will cost the tenant more this is something you have first hand knowledge of because you work in the business?  BTW, what size bike is that?  

Hello @Account Closed

 Yes I have considered that.  I know from the BP forums that some have "additionally insured" so it is happening out there.  I also know I wouldn't want my name on the tenants insurance reimbursement.  What I don't know is if that is how things would happen.  It is a common thing business to business and it seems to be common in some areas of the country.  What would be really helpful is if a BP'er who is listed as additionally insured on a tenants policy and there was a claim.  Then we could get the scoop of how this thing really works. 

 Hi Joe: I think it means only you get notified if the policy lapses or the tenant cancels later.  

Sorry Mark, I see you are a Real Estate investor. I should have read the info before asking. Since you are a company you probably have an LLC or at least you operate under a business name?

Are you talking about cost to move it or value if you turned in that scrap metal for recycling.  By the way you are saying it seems to be the negative for you.  

I am currently re-writing my lease and rental agreements.  One of the additions is renters will be required to have renters insurance.  Now do I have them list me as Additionally Insured or just Additional Interest?   I have done some research:  

Definitions: 

Additional interest - The designation is designed to ensure that a third party (the property owner in this scenario) is notified should the policy cancel or non-renew. This endorsement does not convey any coverage to the additional interest nor cost the tenant any additional premium.

Additional Insured -  a party listed on an insurance policy that has some type of liability interest in the property. The “Additional Insured” has absolutely no right or authority to make any policy changes or to cancel the policy. Also, contrary to popular belief, an “Additional Insured” is ONLY afforded liability protection under the liability portion of the policy and there is no coverage whatsoever for physical losses resulting from such things as vandalism, theft, fire, wind and hail, and so on.

A PM trainer by the name of Judy Cook had some interesting points: Yet it seemed to be more beneficial for the PM company to be listed as Additionally Insured so to help focus on accomplishing the task of defending against a tenant suit.

http://judycook.biz/additional-insured-vs-addition...

So additionally insured seems great for commercial property, commercial business, endeavors but could be confusing for Landlords.  Which is why I am turning to BP members.  I haven't found any really great definitions for additionally insured, just examples.  For instance it means if the tenant is at fault for a fire (let's assume a fire) then the renters liability would cover the renters belongings but the check would be in the name of the renter and the landlord.  If that is the only benefit what benefit is that to me?

Let me know what you do as a landlord and/or property investor.  Oh, and yes I did read BP member DREW SYGIT article 3 Common Mistakes Landlords Make ... and Trey Dulling 6 tips to protect newbie Landlords.  Both good articles but not enough info on insurance, that was not a dig as the articles were not specifically written to explain the differences between additionally insured and additional interest.