What Is A Named Insured?
- Susan Xiong
- 1 day ago
- 2 min read
When it comes to personal home and auto insurance it is important to understand what is a “Named Insured.” A Named Insured is an individual or an entity who is the policyholder on the declarations page of an insurance policy. Most often, a spouse or domestic partner can be listed as a second Named Insured on a policy.
Here are some common rights and responsibilities of the Named Insured:
- Pay for the insurance premium
- Full authorization to discuss the insurance policy
- Receive legal notices about the insurance policy
- Right to choose coverage types and amounts
- Make changes to the insurance policy. For example, a Named Insured can request to remove or add a vehicle on an auto policy or change the policy deductible on a home insurance policy.
- Make changes to the billing payment plan and update billing payment information
- File an insurance claim, collect payment on a claim, and discuss claim details with the insurance company
- Right to cancel the policy
Additional Interest and Additional Insured can often be confused with Named Insured. Additional Interest is a third party who benefits from being added to the policy by the Named Insured. They cannot file claims, collect insurance payments, and do not receive direct financial benefits from the policy. Additional interests do receive notifications when policy changes occur or whether a policy has been cancelled. Lenders, rental leasing companies, mortgages, etc., who have insurable interest in the Named Insured’s property such as a home or auto, may ask or require the Named Insured to have them added as an additional interest on their policy.
Additional Insured is an individual or entity that can also be added to the policy by the Named Insured and most often will receive coverage for liability or property damage. Examples can be non-related residents such as a domestic partner not related by marriage, a roommate, co-signer of the property, or a trust. These individuals cannot make changes to the policy, but their protection is often limited or specified per the endorsement of the policy.
It is important to discuss with your independent agent whether you need to add an individual or entity as an additional interest or additional insured and how your insurance company provides protection in the policy for each case.
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