An additional interest is a person or organization listed on your insurance policy who has a financial or legal interest in the insured property but doesn’t receive insurance coverage themselves. They’re simply notified if your policy changes or is canceled. This helps keep them in the loop and protects their financial interest.
An interested party is another way of saying additional interest. This designation is commonly used when a third party like a landlord, lender or leasing company wants to stay informed about the status of a policy. For instance, in a lease agreement, landlords often require tenants to maintain Renters insurance and list them as an additional interest. This way, landlords know the tenant is keeping active insurance, protecting both the tenant and the property.
In the context of an auto insurance policy, additional interests might include lenders or leasing companies that have a vested interest in ensuring the vehicle remains covered while payments are being made. If your insurance lapses, lenders and leasing companies would get a notice so they can protect their investment.
Third parties are often added as additional interests, so they can be notified about lapses, renewals, or cancellations. This is especially important when someone has a financial stake in the property, like a mortgage company, lienholder or landlord.
For example, a landlord might want proof that a tenant maintains renters' insurance, or a lender might want to make sure a car remains insured until it’s paid off.
People or businesses with a legal or financial connection to the insured item can typically be listed as additional interests. This includes:
They’re not covered by the policy, but they are kept informed about its status.
An additional interest is only notified about the policy—they don’t receive coverage.
A business relationship between parties, such as contractors and clients, can create potential liability exposures that call for additional coverage.
An additional insured, on the other hand, is actually covered under the policy. They receive liability protection or other coverage as specified. Additional insureds can be added to general liability insurance policies. An additional insured receives coverage for liability caused by the acts of the Named Insured.
These two terms are often confused, but they serve very different roles in an insurance policy. The main difference between Additional insured and additional interest is the level of coverage provided under the policy.
In home or renters' insurance, an additional interest is often a landlord or property manager. They’re added to the policy, so they’ll get notified if it’s canceled or lapses—giving them peace of mind that the property is covered. This is common with rental agreements or lease contracts that require an active insurance policy.
Homeowners might need to add additional interests to their policies to protect the financial interests of lenders involved in the mortgage process.
For an auto insurance policy, an additional interest is usually a lender or leasing company. They want to be sure the vehicle remains covered while you’re still making payments, ensuring their financial stake is protected.
If your auto policy lapses or is canceled, the additional interest is notified, but they aren’t entitled to file claims or receive benefits.
Renters insurance policies can provide coverage for personal property, liability, and additional living expenses. Renters can add additional interest or additional insureds to their policy to extend coverage to third parties. For example, a landlord may require a renter to add them as an additional interest on the renter’s insurance policy. This makes sure that the landlord is notified of any changes to the policy and can protect their financial interest in the rental property.
Renters can also add additional insureds to their policy, such as a roommate or a domestic partner. It is essential to review the policy and determine the best coverage options for the renter’s needs. Renters' insurance policies can vary depending on the insurance carrier and the location of the rental property. Renters should shop around and compare policies to find the best coverage at a price that works for them.
An additional interest receives:
They do not receive:
They also cannot make a claim on the insurance policy.
They’re included for transparency, not for benefits.
In most cases, adding an additional interest won’t change your premium. You’re simply sharing information with a third party who has a financial interest in the insured property. Adding an additional interest does not affect the payment obligations of the primary insured. However, adding an additional insured typically results in a small increase in insurance premium.
Some insurance companies might charge a small fee to update your policy, so it’s good to ask when you add someone.
You can usually add an additional interest by contacting your VIU by HUB Advisor or updating your policy online. Policyholders can request to add an additional interest by contacting their insurance company. You’ll need to provide:
If you need help, a licensed VIU by HUB Advisor can guide you through the steps.
Yes, you can remove an additional interest when they no longer have a stake in the property. For example, if a co-owner no longer has a financial interest, you can remove them as an additional interest. Here are some other situations that could call for the removal of an additional interest from an insurance policy:
Be sure to contact your insurance company to confirm the removal is processed correctly.
No, an additional interest is not a policyholder. The policyholder is the person who owns and controls the policy. The primary insured is the main policyholder who holds the insurance coverage. An additional interest only receives updates about the policy and they can’t make changes, file claims or receive benefits. An additional insured can make claims on the insurance policy, whereas an Additional Interest cannot.
If you see a name on your policy that you don’t recognize, contact your insurance company immediately. It may have been added in error, or it could have been left over from a previous contract or loan.
Always double-check your policy and lease terms, so you know who should be listed.
Your insurance company can help you verify or remove incorrect entries and make sure that your policy reflects your current situation.
No, an additional interest and a loss payee are not the same. An additional interest is notified about changes to an insurance policy but does not receive coverage or payouts. In contrast, a loss payee is a party that receives payment directly from the insurance company in the event of a loss, typically associated with property or auto insurance.
