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Additionally Insured vs. Additional Interest

So let’s break down insurance terms:

Homeowner’s Insurance – If your home is damaged by fire or flood, this will cover those issues. If you have a mortgage, this is required. There is also liability included in this and varies a lot. The more coverage you buy, the more it covers. Liability insurance is what covers you if a tenant or guest gets hurt on your property. TIP: We recommend you increase your deductible to the highest possible so your insurance premiums are less.

Renter’s Insurance – This covers the renter’s personal possessions and may offer lodging if something goes really wrong. We make this a requirement for tenants who live below other tenants. That’s because things seem to always go really wrong in rental properties.

Additional Interest – On your policy, you may notice your mortgage holder is listed as additional interest. This means if you stop paying your premium or if you cancel your insurance, they will will get notified.

Additional Insured – This means if your tenants get injured and file a claim against you or Limestone Investments, we are insured jointly. This happens about once every year by a tenant who claims they were injured in a “Slip and Fall.” It’s annoying and there isn’t much we can do about it. The benefits to you and us is we will have a joint defense against the attack.

What you are required to do

Talk to your insurance company and tell them you need to Limestone Investments as additional insured. Generally, this conversation goes in one of three directions:

  • First, your insurance company may offer to add us as an “additional interest.” At face-value, this might seem like what you’re looking for. However, “additional interest” doesn’t protect us.
  • The insurer may want to charge you a fee to make the change to your policy. Our recommendation is that you either ask them to waive this charge or you will take your business somewhere else. There are many competitive policies out there with no charge for an additional insured.

Either way, it’s important that you come out of this process with us added to your policy. This addition closes a critical loophole and ensures that everyone in the home rental system—tenant, us, and you.

Additional insured is not an option. It is a requirement and we do track it. We will not manage your property without it.