What Is Additional Interest in Renters Insurance?

What Is Additional Interest in Renters Insurance?
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When you buy a home, your homeowners insurance is generally tied into your mortgage for a reason. As with a mortgage company, a renter’s landlord has a vested interest in whether the tenant has renters insurance on the contents of the unit. Renters insurance additional interest simply refers to the requirement that your landlord be on your policy as having an interest in being notified if there are any changes to your insurance coverage.


  • An additional interest refers to a person or business listed on a renters insurance policy as having an interest in the policy. This allows the party to be notified if you change or cancel the policy during your lease.

Renters Insurance Additional Interest

Initially, it may sound like renters insurance additional interest refers to some type of interest you’re required to pay. In actuality, though, “interest” refers to additional parties that may have an interest in your policy. Your landlord would be an interested party when it comes to the insurance you hold on the unit you’re renting.

Renters insurance is primarily set up to cover the valuables inside your apartment if a fire, natural disaster or other unexpected event causes damage. However, it also offers liability coverage if you damage property in common areas or your dog bites someone. For that reason, your landlord has a vested interest in the status of your renters insurance.

Additional Insured vs Additional Interest

It can be easy to confuse additional insured as something that sounds similar but is completely different. When you’re looking at additional insured vs additional interest home renters insurance, the biggest difference is that additional insured means you’re adding another person to the policy. Additional interest parties can check on the status of your policy but those who are listed as additional insured actually enjoy at least limited coverage under it.

One of the most important areas of difference with additional insured vs additional interest home renters insurance is liability. If someone sues the person renting the property after an injury, having an additional insured vs additional interest home renters policy will make a big difference. The renters insurance additional insured may be covered by the insurance policy in a lawsuit, while the additional interest party won't be.

Misuse of Additional Insured

Whether it’s homeowners or renters insurance, additional insured should be used very carefully. The fact that they can easily be misunderstood can lead to costly errors. The biggest reason for this is that two parties listed on the same policy can’t sue each other. That means if your landlord somehow talks you into listing him as additional insured instead of additional interest, you may be out of luck if something goes legally astray.

If anyone, from a landlord to a contractor or even a roommate, asks to be added to your renters insurance as additional insured, make sure you fully understand what that means under the terms of your own policy. In addition to the liability issues that come with doing that, you’ll also face an additional cost. Additional interest is geared toward anyone who has an interest in making sure the property stays insured, but it has nothing to do with adding the person to your policy or paying more money to have that person included.

How to Name Additional Interest

When a landlord or property management company asks to be named as having an additional interest on your insurance policy, you’ll have to take action on your end to make sure that happens. This is in addition to providing proof of insurance, which will likely be required whether the overseer of your property wants to be named as an additional interest party or not.

Chances are, before you’ll be greenlit to move into the rental property, you’ll be required to have renters insurance already set up. If you don’t already have a policy, you can request the additional interest party be added when you secure your renters insurance. In some cases, you may be able to add the additional interest on the insurance company’s website, but other insurers will require that you contact them to set this up. Make sure you have the official address for the property so that if a third-party company is monitoring insurance on renters, there are no errors related to having the wrong address.