Additional Interest

What Does Additional Interest Mean?

An additional interest, in the context of insurance, refers to an uninsured third party named in a policy who has an “interest” in being notified if the policy is canceled or modified. While this party is informed of any changes, they do not receive any coverage.

However, some insurers use the term interchangeably with “additional insured,” even though the two are technically distinct.

Insuranceopedia Explains Additional Interest

Unlike an additional interest, an additional insured receives coverage from the primary insured’s policy, whereas an additional interest is only notified of changes to the policy. Given the significant difference between these two similar terms, it is crucial for all parties involved to carefully review their policy documents and consult with their insurer to ensure they understand the distinctions, particularly since usage may vary depending on the insurer.

Additional interests are commonly included in property insurance policies where multiple parties own, lease, or use the property. This ensures that parties who could be affected by a change or loss of coverage for the primary insured are kept informed about the policy details.