What's the difference between an additional insured and an additional interest in an insurance policy? (Photo: ALM Archives)
Editor's Note: Many times, an insured is asked to add someone as an additional interest when they should be an additional insured or vice versa. Our question this week addressing such a situation.
Question: We have an insured written on an HO4 renters policy. The landlord and the property management company want to be included as additional insureds in the policy. It is not acceptable to them to be listed as additional interests.
Can you provide some insight on whether it's common for both of these parties in this situation to be added as additional insureds? Are there ISO forms that accomplish this, etc.?
— Utah Subscriber
Analysis: Additional insureds and additional interests are often confused. An 'additional insured' is someone who receives coverage similar to the named insured and can receive liability coverage. An 'additional interest' has a financial interest in the property.
Heather A. Turner
Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].