What Is an Interested Party on Renters Insurance?
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When purchasing a renters insurance policy, you will have the option of adding an interested party to your agreement.
Also referred to as an additional interest, party of interest, or third party designee, an interested party on an insurance policy refers to anyone who will be notified if your insurance coverage is changed or canceled. The most common interested parties typically include your landlord and/or property manager, but can also extend to any additional parties you would like to stay informed about your insurance coverage.
Who needs interested party renters insurance?
If your lease requires that you purchase renters insurance, it can be beneficial to add an interested party to your policy at the moment of purchase. Many landlords and property managers require proof that you have taken out an insurance policy, and by making them an interested party in your agreement, you ensure that they receive the same correspondence that you do and are alerted in the event any changes are made to your policy.
If renters insurance isn’t required in your lease but you decide to take out a policy, you should still consider adding your landlord or property manager as an interested party in your agreement so that you don’t have to show them proof of insurance each year.
Additional interest and additional insured
When looking over your insurance agreement and considering its additional offerings, it’s important that you understand the nuances between the terms detailed in your specific plan. Renters often conflate the terms additional interest and additional insured, but the distinction between them is incredibly important because it can significantly impact your coverage and monthly bill.
Additional interest: Adding an interested party to your insurance policy will not affect your premium because it does not increase your insurance coverage in any way, but simply ensures that the interested party is informed about the status of your insurance agreement via mailed correspondence.
Additional insured: When adding an additional insured party to your insurance agreement, you are making the decision to extend your coverage to include the specified person, which will affect your policy and increase your premium.
How to add an interested party to your insurance agreement
To add an additional party to your renters insurance policy, all you need to do is contact your insurance company and they will handle it for you, typically free of charge. You will need to provide your insurer with the name of the additional party, their address, and perhaps even a phone number or email to ensure that they receive the necessary policy updates. This can be done via phone call, fax, online, or in-person.