What is an Interested Party on a Renters' Insurance Policy?
What is an Interested Party on a Renters’ Insurance Policy?
An interested party is a term often used in connection with Minnesota renters’ insurance policies, usually where a landlord requires a tenant to list the landlord as an interested party. An interested party is also often known as an “additional interested party” and is another party (typically a landlord) who is provided information about a tenant’s renters’ insurance policy.
The interested party receives information and updates about the policy including changes to the policy, policy renewal, or policy cancellation. Landlords are the most common interested parties, as they have an interested in knowing whether their tenants are maintaining renters’ insurance.
Why do Landlords Require Being Added as an Interested Party?
Landlords are common interested parties, because they usually want to make sure that their rental or lease agreement is being followed. Many landlords require rental insurance under a lease in order to protect their own interests in the property should damage or some form of personal liability arise. Being listed as an interested party allows the landlord to keep track of their tenant’s policy and receive updates about any changes. This is often much easier than requiring a tenant to send policy updates to the landlord, as this requires an additional step which often results in landlords not receiving up to date information.
What are the Drawbacks to Adding a Landlord as an Interested Party?
Typically there are few drawbacks to a Minnesota tenant listing a landlord as an interested party. This designation merely allows the landlord to access information about the policy, not make changes or otherwise modify the policy. In general, adding a landlord as an interested party to a renters’ insurance policy required by a lease is convenient for both Minnesota landlords and tenants.
How do I Add a Landlord as an Interested Party?
Tenants most commonly add landlords an interested party at the beginning of their lease or when they change insurance companies. However, tenants can generally add a landlord as an interested party at any time, and should contact their insurance company directly to determine how to do this. Usually this process is simply and only requires tenants to provide the insurance company with their landlord’s name and contact information.
How do I Know if I Need to Add My Landlord as an Interested Party?
Whether or not a Minnesota tenant needs to add their landlord as an interested party to their renters’ insurance policy is determined by their lease. Many Minnesota residential leases include provisions requiring a tenant add their landlord as an interested party. While not all leases require that a tenant maintain renters’ insurance, most of those that do also require that a tenant add their landlord as an interested party. If you are a tenant who is wondering whether you need to add your landlord to your renters’ insurance policy, it is wise to thoroughly review your lease agreement for any mention of such requirements. It is also wise to review the lease for such provisions prior to signing, if you are moving into a new property.
If you are a Minnesota landlord who requires renters’ insurance, it is often a good idea to require a tenant to add you as an interested party. This can remove the necessity to contact the tenant directly for policy information and can expedite all updates as to the status of the insurance policy.
If you do not have a renters’ insurance policy requirement in your lease or are considering adding such a provision, it is wise to contact an experienced Minnesota landlord attorney for situation-specific guidance. Call the landlord-tenant attorneys at RAM Law PLLC now by phone at 651-468-2103 or submit our convenient online consultation form for more information.