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Difference Between Additional Insured versus Additional Interest Insurance Policy

David Cota - Thursday, July 5, 2018

We are not insurance agents, but we are a professional property management company serving the Sarasota/Bradenton and Portland, Oregon areas, and we can help you understand the terminology that’s used when it comes to insuring your rental properties. Today, we’re talking about insurance and the difference between additional insured and additional interest.

Additional Insured vs. Additional Interest

These are two different things that you may see in an insurance policy. Additional interest is basically just putting the property manager on a policy. We are added as an additional interest on the tenant’s renter’s insurance policy in case their policy lapses. If it does lapse, we would be informed. It works the same way with an owner’s policy. When we ask to be on the owner’s policy as an additional interest, it notifies us in case the policy lapses.

Additional Insured Costs More

If we were additionally insured by your policy, it would actually cost you more money because an additional party is being insured. That’s the main difference between naming your management company as additionally insured – in which case the manager is actually insured and covered, and additional interest - wherein if a client’s policy lapses, we would be notified as an additional interest. This is an easy one, but insurance can be complicated for landlords and for tenants. If you have any questions about the coverage you need, please contact us at PropM Property Management. We’d be happy to tell you more.