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.

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the lease signing, and then six months later the policy is canceled, the landlord might never know that the policy is no longer in effect, unless they are listed as an interested party on your policy.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

The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.