How to add interested party to renters insurance state farm

When you purchase a renters insurance policy, you have the option of naming an interested party, also known as an additional interest or party of interest. An additional interest is notified about changes to your renters insurance policy, for example, if you cancel your policy or don’t renew it. Why would you name an interested party? And what is the difference between an interested party and and an additional insured?

How to add an interested party

You can add additional interest or interested party or party of interest after you purchase your renters insurance policy. You simply contact your insurance company and say that you want to add an additional interest. Some insurance companies will allow you to name an additional insured online; others will want a phone call or even a fax — it depends on your company.

When you add the additional insured, you will need to provide the name of the party and also an address so that they can receive updates about your account. Before you call, make sure you get the correct address from your landlord, property management company, or your lease. Some companies use outside agencies to monitor their insurance certificates, so the address to list on your policy may be different from the leasing office.

Difference between additional interest and additional insured

An additional interest that is listed on your insurance policy does not receive any insurance coverage and does not affect your premiums. The additional interest simply gets alerted if you cancel or don’t renew your policy. It doesn’t cost anything to add an interested party.

When you name an additional insured, however, you are extending the coverage of your policy to another person, like a live-in partner or a roommate. Adding an additional insured to your policy may increase your premiums.

Read more about renters insurance and roommates.

Who needs to name an additional interest

If your landlord or property management company requires that you purchase renters insurance, then it’s very likely they will also require you to list the management company as an additional interested party on your renters insurance policy. Some landlords may just require to see proof of insurance, but many will want to be listed on the policy as an additional insured so that they will get a notice if you ever cancel the policy, lower your coverage, or if you don’t renew it.

Why your landlord wants to be an interested party

The reason your landlord wants to be listed as an interested party on your renters insurance policy is the same reason he wants you to get renters insurance in the first place: protection, both for you and for him.

There are a few explicit ways that you getting renters insurance is good for your landlord, and requiring that you name him as an additional insured or an interested party just means that he can be sure that your policy is in force and that the coverage is in place.

Reasons why landlords require renters insurance, and require being named as additional insured:

1. The personal property coverage of your renters insurance policy ensures that you have protection in case your belongings get destroyed — many tenants without renters insurance don’t know that their landlords aren’t liable for their personal property, and by requiring renters insurance, your landlord ensures that you know that and will have no reason to try to get him to pay. (Similarly, the additional living expenses provided by your renters insurance policy ensure that you have a place to stay if the building burns down — and that you won’t try to get the landlord to pay for your expenses).

2. The liability coverage of your renters insurance policy means that if you damage or destroy the building through negligence, your landlord can sue you, knowing that your renters insurance policy will pay for your legal feels and that your liability coverage would pay for the damage to the building (or at least, for his out-of-pocket deductible).

3. The liability and medical payments offered by your policy also protect the landlord. This coverage means that if a guest gets hurt in your apartment or gets bitten by your dog, they have recourse to go to your insurance company and won’t go after your landlord.

Policygenius can help you find the right renters insurance company and the right amount of coverage. Get a free renters insurance quote.

When you’ve found an apartment that meets your needs and budget, there’s more to think about than making your security deposit and plans to move in. Your landlord may require you to have a renters insurance policy and might even require that they be listed as an interested party on your policy.

In the context of renters insurance, an interested party is an individual or entity who is included for notification on the policy’s status. This designation is also sometimes called an “additional interested,” “party of interest,” or “third-party designee.”

If your landlord required you to have renters insurance and list them as an interested party on the policy, this allows the landlord to be notified if your policy is dropped, modified, or allowed to lapse.

Why does your landlord require you to list them as an interested party?

Your landlord likely requires you to list them as an interested party so that they can have proof that you’re covered by a renters insurance policy and receive notification if anything changes.

Your landlord may want to be assured that their risk and your risk is minimized with a renters insurance policy. A renters insurance policy covers your personal property and may also provide you with liability protection and other things including coverage for additional living expenses. However, that insurance coverage only applies as long as the policy remains in good standing.

If a renter provides proof of renters insurance at the lease signing, and then six months later the policy is canceled, the landlord might never know that the policy is no longer in effect, unless they are listed as an interested party on your policy.

Dropping renters insurance is a big gamble. If your lease requires you to carry coverage (and many now do) allowing the policy to lapse or canceling it violates the terms of your lease. If your landlord finds out, you could be in significant trouble, and that’s without any accident involved.

If you cancel your renters insurance policy and there is an accident that you are responsible for, you would likely be responsible for paying for all of the repairs out of pocket.

So, your landlord may be asking to be listed as an interested party on your renters policy for the same reason they are requiring you to get coverage in the first place. It’s likely to protect themselves in the event of an accident that causes property damage or liability issues. They want to be sure you have renters insurance and keep the policy active.

Additional interested vs. additional insured

Insurance terms are very specific and it’s important to pay close attention to what type of coverage is requested. “Additional interested” is very different from “additional insured,” even though both terms sound similar.

An “additional insured” would be a person covered by the provisions of your renters insurance policy. This could be a spouse who lives with you in the rental. In most cases, it makes sense even for each roommate to have their own renters policy. Having an “additional insured” on your renters insurance policy only makes sense if all of the property being covered is or will soon be jointly owned, such as an engaged or married couple.

If your landlord asks to be listed as an “additional insured,” they most likely mean “additional interested.” Be sure to ask your landlord for clarification and make certain you know what is being requested of you. Having your landlord listed on your policy as an additional insured doesn’t really make sense, because the landlord doesn’t share ownership of your property.

How do you add your landlord as an interested party to your policy?

Adding your landlord as an additional interested party on your renters insurance policy should be a fairly straightforward process. It should be as simple as letting your agent know, or adding your landlord’s name and address online.

Not all insurance companies have this as an option, however. If your insurance company isn’t able to add your landlord as an additional interested party, find out what they will do (such as provide proof of insurance). Talk to your landlord to see if that’s sufficient.

If you’re looking for renters insurance, you can visit Clearsurance’s renters insurance rankings page to see a list of the best companies in your area, according to consumers. Be sure to get renters insurance quotes from multiple companies so you can compare the cost of each to find the best deal.

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About The Author: Jen Phillips

Freelance Writer

Jen Phillips is a freelance writer at Clearsurance. Her writing interests include FAQs and providing helpful information about commonly searched insurance topics.

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