Additional Interest/Insured

Additional interest and additional insured are among the more commonly misunderstood terms in insurance. They are often used interchangeably, but they refer to different parties. 

An additional interest has a vested “interest” in the item or property being insured but has no actual ownership of it. This is most often an entity like a bank or other lender who wants to be kept up to date on how the item is being protected. 

An additional insured party often holds partial ownership of what’s being insured. It is important that anyone with partial ownership of the insured interest is listed on your policy. This person may be added to your policy as an endorsement. You can find any additional insureds listed on your insurance policy’s declarations page.