What Is an Interested Party in Renters Insurance?


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ByMark Fitzpatrick
Edited byCasie McCoskey
ByMark Fitzpatrick
Edited byCasie McCoskey

Updated: May 22, 2024

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In renters insurance, an interested party is a person or entity, such as your landlord, that receives notifications regarding any changes to your policy. Also referred to as "additional interest" or "third-party designee," this party receives updates on policy changes, renewals or cancellations. Landlords commonly request to be listed as an interested party to ensure tenants maintain sufficient coverage, protecting both parties' financial interests. By understanding how an interested party works, you can ensure you comply with your lease agreement as a tenant.

What Is An Interested Party in Renters Insurance?

An interested party in renters insurance is a third party that receives updates if you renew, make changes or cancel your policy. It's also known as "additional interest," "third-party designee," or "party of interest."

The third party is often the landlord or property management company, which ensures the tenant has the correct renters insurance before renting a property. However, while being an interested party entitles the landlord to know the status of the policy, it doesn't allow them to make claims or changes.

Why Do Landlords Want To Be Listed As An Interested Party?

Landlords want to be listed as an interested party on renters insurance policies to ensure the policy is active. After all, most landlords require tenants to get renters insurance, and being listed as an interested party ensures they have the most current policy information.

For instance, if you decide to increase or decrease your coverage, your insurer will notify your landlord. The same applies if you cancel your policy altogether. Being listed as an interested party can also weed out dishonest tenants who might purchase a policy temporarily and cancel it afterward.

As an interested party, the landlord can ensure the policy is active, and the necessary coverage is in place. This practice creates a secure and transparent relationship between landlord and tenant, fostering trust and understanding in a complex aspect of renting.

How To Add An Interested Party To Renters Insurance

Adding an interested party to your renters insurance policy is often a straightforward online process, but this may vary by the insurance company. It's worth noting that adding an interested party should not increase your premium and rarely comes with a fee.

1
Understand your provider’s process

Recognize that the process may vary slightly by insurance company. Some may allow you to add an interested party online, while others may require a phone call or fax.

2
Gather necessary information

Collect your landlord's contact information, including their name, address and email.

3
Access your policy online (if applicable)

If your provider allows online additions, log in to your account or mobile app. Some providers might allow you to add an interested party in just a few clicks.

4
Follow instructions

Depending on your provider, you may need to send the interested party’s information elsewhere. Provide the necessary information as prompted.

5
Confirm addition

Ensure that your insurer has added the interested party to your policy. Your landlord should receive a description of your renters policy via email or regular mail shortly after the addition.

6
Verify costs (if any)

You can usually add an interested party for free. If a company charges more than a nominal fee, consider finding a better rate elsewhere.

The Difference Between Additional Interest and Additional Insured

Additional interest refers to someone notified about your insurance status, while additional insured extends coverage to another person, often at a higher premium. While both terms seem deceivingly alike, their similarities end with their names. "Additional interest" is synonymous with "interested party," which refers to landlords or property owners who should know about your policy but are not covered by it. Adding an additional interested party alerts them if you cancel or don't renew your policy without extra cost.

"Additional insured," however, extends your policy coverage to another person, like a live-in partner. For example, the liability policy would cover the damages if your roommate's dog injures a visitor. It may also increase your premiums, but if you shop around, you can still find cheap renters insurance.

Do You Need To Add Your Landlord as an Additional Insured?

It's not wise to add your landlord as an additional insured, as it can lead to legal challenges. If you choose to mark your landlord as an additional insured, it would be challenging to go after them if you need to sue, as your policy would also protect them. In other words, the policy you're paying for would also cover your landlord — and that's not ideal. Aside from the legal complexities, renters insurance companies recognize the potential problems with listing a landlord as an additional insured and won't allow it.

In some instances, landlords may request to be added as "additional insured" when they mean "additional interest." Clarify what your landlord means and explain the implications if they request to be added as an additional insured.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.