A renters insurance additional interest — or interested party — refers to a financially invested third party, like a landlord or property management company. Your policy doesn’t cover additional interests, but the insurance company may inform them of any changes to your policy. Often, a landlord will request to be listed as an additional interest to ensure that your renters policy doesn’t lapse.
Even if your landlord doesn’t require you to have a renters policy, having one can be beneficial. Standard renters insurance policies protect your personal belongings from covered perils, like a windstorm or break-in. It also covers your liabilities and loss of use.
Additional interest and additional insured sound like similar terms, but they have very different meanings. If you’re purchasing a renters insurance policy, it’s important to understand each one and how they differ.
An additional interest is someone who doesn’t receive coverage under your renters insurance policy but has a financial interest in your apartment. You may include your landlord or a property management company as an additional interest because they own the building you live in.1
Your insurer will notify your additional interest of policy lapse or cancellation. But additional interests don’t have the ability to file claims under your policy or make changes. Your coverage also won’t provide any protection for their liabilities in the event of a lawsuit.
Adding your landlord or another party as an additional interest should have no effect on your renters insurance premium.2
An additional insured is someone your renters insurance policy covers. You and an additional insured receive the same coverage.3 You can add people as additional insureds after you purchase the policy, but only you receive coverage initially.
Additional insureds are typically people who live in your household, like a spouse, adult child, or roommate. Unlike additional interests, an additional insured can also file claims and receive compensation from the insurance company following damage or loss.
Adding an additional insured may cause your renters insurance premium to increase slightly.
Your landlord might want to be an additional interest in your renters policy because they have a vested interest in the property. If your renters insurance policy lapses, the landlord will be financially responsible for any damage you cause. And if a guest incurs an accidental injury at your apartment, the injured party could hold your landlord liable for their medical expenses.
After you add your landlord as an additional interest, your insurance company will inform your landlord if your policy lapses or changes in a way that could put them at risk for lawsuits. This enables your landlord to make sure you have insurance if they require it in your lease agreement.
If you need to add an additional interest to your renters insurance policy, follow these steps:
You can remove an additional interest from your renters insurance policy. Here are a couple of situations when you might want to remove an additional interest from your renters policy:
Your landlord sells the apartment building. If your landlord sells the building where you live, they no longer have a vested interest in your apartment, and you can remove them as an additional interest.
You’re moving out of your apartment. When you move to a new apartment, you can keep your same renters insurance policy and update your information. You should remove your old landlord if they’re listed as an additional interest.
If you have a renters insurance policy, it’s important to understand how additional interests work and when you might need to add one. Here’s some more information that can be helpful.
Yes. Your landlord can require you to add them as an additional interest on your renters policy if you’ve agreed to it in your lease agreement. In this case, you legally have to comply with the contract and add them to your policy.
No. Additional interests can’t file claims on your renters insurance policy. An additional interest will receive notifications about changes to your policy — like policy lapse or cancellation — but they don’t receive any coverage. Only you or an additional insured can make claims on your policy.
Adding an additional interest to your renters insurance policy usually isn’t risky. It won’t affect your coverage or your premium.
But keep in mind that additional interests will receive updates about your policy. For example, if you cancel your policy or make changes that go against your lease agreement, your landlord will likely find out.
No. You shouldn’t add your landlord to your renters policy as an additional insured. Landlords and property managers don’t need to make claims on a tenant’s policy. They should have a separate landlord insurance policy to cover their belongings and liabilities.
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