Additional Insured

An additional insured is a person you add to your insurance policy (not related to you by blood, marriage, or adoption) who lives with you and/or has a financial interest in your place.

Who is an additional insured?

An additional insured refers to a person added on to an insurance policy who has an ownership interest in the property, but isn’t the policyholder or someone related to them by blood, marriage, or adoption.

This includes people with a financial interest in the policyholder’s place to the extent that if something happened, they’d be affected, as well as others living at they policyholder’s address but not covered by their policy.

Why you’d want to add an additional insured

While your policy already covers those related to you by blood, marriage, or adoption who are living in your household, there are a few cases where adding an additional insured might come in handy:

  1. If you’re living with a partner, but decided not to take the marriage plunge
  2. If you’re living with a relative that isn’t a first degree relation
  3. If someone else owns a part of your place but isn’t living with you

Pro Tip: When adding your partner or relative as an additional insured, you should increase your personal property coverage to make sure there’s enough for you both.

Personal liability and adding an additional insured

More people means more liability, or a higher chance of bad things happening to those you love – things like getting sued, or having to pay medical bills or legal fees as the result of an accident.

Stuff happens (that’s life!), and you’ll want to be as prepared as possible.

When adding an additional insured to your policy, keep in mind that the default personal liability coverage, which usually starts at around $100,000, may not be enough for everyone.

To figure out how much coverage to take, think about how much of a larger monthly premium you’re willing to pay now versus what you may have to pay in the future, and choose a number that makes sense for you.

Named insured vs additional insured

These two terms can be a head scratcher when you don’t know what’s what. And guess what? People confuse them all the time.

Not to worry though, we’ll clear things up:

  • Named insured is insurance lingo for people who are covered under your home or renters insurance policy (you, your spouse, your immediate family members living with you, etc.).
  • Additional insured is anyone who isn’t initially covered by your policy, but who you’ve selected to add, and has a valid interest in your property. 
Please Note: These definitions don’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade. They are intended for educational purposes only - they’re not meant to be used in lieu of professional legal or financial advice. We’ll do our best to keep them updated, but they may not always reflect current industry developments. Feel free to use the terms with attribution (friends don’t let friends plagiarize!)
Property and casualty insurance provided by Lemonade Insurance Company, 5 Crosby St., 3rd floor, New York, NY 10013. Life Insurance provided by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193.
Lemonade Insurance Agency, LLC (LIA) is acting as the agent of Lemonade Insurance Company and Lemonade Life Insurance Agency, LLC (LLIA) is acting as the agent of North American Company for Life and Health Insurance®. Both LIA and LLIA receive compensation based on the premiums for the insurance policies each sells. Further information is available upon request.
LLIA is a sub-producer of Bestow Agency, LLC. Life insurance quotes are provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life insurance policies are issued on North American Company for Life and Health Insurance® policy form LS181 and LS182, or state version including all applicable endorsements and riders. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. Our application asks about your lifestyle and health; your answers allow us to save you time and avoid offline medical exams.