Once tenants have the required renters insurance naming you as the additional insured, when they damage something, do you have them report the damage and get paid or do you file the claim?

Do you get a copy of the insurance contract to know what is covered?

i had one that caught place on fire

had her file with her insurance

NEXUs just sends me a notice saying that I am covered.

I have received my deductible back after having to reach out to the company insuring them. You will have to prove negligence and pin that action down to the specific tenant. In my case, the resident was in a non-smoking home and feel asleep with a cigarette in their mouth and the carpet caught fire along with the sofa.

Ray, was it the same tenant that caused the fire?

Could someone give the reasoning for interested party vs additional insured? I remember reading additional insured here recently, which prompted my question.

I don't know all the specifics, but I don't think you can technically be an additional insured because you already have dwelling insurance, but additional interest allows you to get notification of any changes to their policy.

I ask them to get 300K coverage plus name me as additional interest. I get notice when their insurance is ending or needs renewed. Usually in the form of a postcard.

As a general rule it’s never going to come into play. If they damage something you charge the tenant and they will pay you and if they want they can try and file it on their insurance. The only times it would come into play is if they burn your house down or their dog bites someone and you are named in a lawsuit.

If someone burglars their home they can file a claim.

Today I spoke to an insurance regarding renter's insurance. When I asked how the policy should be written she said as additional insured. The tenant would need to file the claim. She went on to describe several scenarios the insurance would cover. I gave her a couple scenarios we have encountered over the years and she said they would have been covered by renter's insurance.

I still have questions after pondering more and will be checking with other insurers I spoke to Progressive and would not be insured with them because they are not writing rental properties anymore, so no conflict there.

Now I'm wondering how much the tenant's deductible would be. Progressive told me one of the factors that determines the cost the tenant will pay...their credit score. Since I require a score of 750+ that would be one factor in their favor.

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I need to add this to my list of questions for my insurance rep.

Wow, you require a score of 750+? Good on you for being able to do that and still keep the places full.

ZERO: Don't pat me on the back too much; I am not keeping my units full, on purpose. Instead, I'm putting one high quality person in each lower unit. It keeps us in the tax bracket I want to be in. I can work twice as hard and end up paying Uncle Sam the $. We can take our time updating the upper units ready for sale, or if we need the income. We have also had people in the past that want to blame everything that happens on the building. Really hard to do if you are the only one living there are we are updating the upper unit while the lower is at work.

JASON: I have had that happen once, otherwise the opposite. Tenants think they will be moving in a year, but I've had several that tell me that when they apply, and then stay 3-6 years before they buy. And when they do, they end up referring a few people to choose from as replacements, and are more cooperative. I worked my Mom's Virginia properties in a college town. That market was all students with less fortunate credit scores until I rented to a wonderful gal from China who had a 750+ credit score. She was phenomenal; stayed through her 4 years schooling. We were able to sell my mom's car to her after we moved my mom to WI.

When the tide changes, we flow to change with it. We're not rich, but comfortable enough for our age.

Additional interest means 1) you will get notified if your tenant drops insurance and 2) your insurance premiums don't go up if your tenant burns down the building because your insurance company will get reimbursed from the tenant's insurance company.

Additional insured means 1) you might get notified if your tenant drops insurance and 2) the tenant's insurance company will also defend you for a covered liability but 3) your tenant's insurance company insurance company will not reimburse you or your insurance company if your tenant burns down the building because you are an insured, so your insurance premiums will likely go up.

Oreo,

At one time, the cost to the tenant was about $10-$15/month through their auto insurance or bank. You can just send a notice (to everyone or just her) that business reasons require that tenants be required to get renters insurance by the New Year and give your criteria. To help make the transition easier, tell them (or specifically her) that you will reimburse up to $100 to those who get renter's insurance prior to their lease renewal. Those who do not get renter's insurance by the deadline will not have their lease renewed in the future.