A policyholder is the one who owns the insurance policy. So, if you buy an insurance policy under your own name, you’re the policyholder, and you’re protected by all of the details inside.

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As the policyholder, you can also add more people to your policy, depending on your relationship. Most policies automatically cover all residents of your household who are related to you by marriage, blood, or adoption. While they won’t be “policyholders” necessarily, they will be covered under the same policy as yourself as named insured

You can also add extra people that live at or have a financial interest in your place – these extra people are referred to as additional insured.

Pro tip: Always take into account the stuff that additional people on your policy own (other than you, the policyholder) to ensure you all have enough cover!

Is there a need for additional cover?

Ideally, anyone outside of your immediate family (read: anyone other than your mum, dad, brother, sister, children, grandparents, etc.) should generally seek additional cover.

This isn’t because you feel any less close to them. It’s so you’ll all have enough protection should anything happen.

So if you’re living with a second cousin or another distant relative, it’s probably better that you each get your own policy. If you’re living with your sister, just make sure you buy enough cover for all of your (and her) stuff! 

Also, keep in mind with two policies, everyone will have their own personal liability protection which is important!

Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.