What is Additional Interest?
In the context of personal or business insurance, “additional interest” refers to a third party, such as a landlord, leasing company, or lender, that is added to an insurance policyholder’s coverage. This is common when the third party has a financial interest in the insured asset, such as a property or vehicle.
For instance, in auto or homeowners insurance, an additional interest might be the lienholder or landlord who wants to ensure that the asset they have an interest in is properly insured. They do not share ownership or policyholder rights but will be notified if any changes occur to the policy, such as cancellations or lapses in coverage.
Adding an additional interest provides peace of mind to lenders or property owners that the property or asset will remain insured, and they will be kept informed of any issues that could affect their financial stake.