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 the 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:
- If you’re living with a partner, but decided not to take the marriage plunge
- If you’re living with a relative that isn’t a first degree relation
- If someone is a co-signer or guarantor on your lease 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.