What Is an Interested Party on a Renters Insurance Policy?

An interested party on a renters insurance policy is someone who is notified by your renters insurance provider that you have coverage. They will also be notified if you cancel or make a change to your policy. In most cases, an interested party will be your landlord. They'll want to confirm that you have renters insurance, which is a common requirement for renting an apartment or house.

An interested party is also sometimes called an "additional interest" or "third-party designee." Being named as an interested party doesn't allow your landlord to make a claim on or changes to your insurance. It only lets them know the status of your policy.

Why do landlords require you to list them as an interested party on renters insurance?

It's common for landlords to require tenants to buy renters insurance, to limit their financial liability and yours if an accident occurs. If you need insurance as a condition of your lease, listing your landlord as an interested party will provide them with proof that you've bought sufficient coverage.

How do you add an interested party?

Naming your landlord as an interested party on your insurance policy is straightforward, but the process may differ slightly by insurance company. Most renters insurance companies, including State Farm, Geico and Lemonade, allow you to add an interested party online. You'll need to provide your landlord's name, address and email. Your landlord will get details about your renters policy via email or regular mail shortly after you add them.

Adding an interested party is typically free. If you find a company that charges more than a dollar or two per month to add one, consider shopping for a better deal on renters insurance. Even a few dollars is a significant increase in the monthly cost of renters insurance.

The difference between ‘additional interest' and ‘additional insured'

"Additional interest" and "additional insured" sound similar but are very different. "Additional interest" is simply another name for an interested party — someone who wants to know you have renters insurance. It's common to add your landlord as an additional interest.

"Additional insured," on the other hand, is another person covered by your policy. Adding your landlord as an additional insured is a very bad idea — for you, your landlord and your insurance company. In fact, most renters insurance companies won't let you add them.

If you add someone to your policy as an additional insured, they're protected by your policy's liability coverage. It's common to add a spouse or roommate as an additional insured, so they're protected. If you add your roommate to your policy and a visitor is hurt by your roommate's dog, the liability policy would cover any damages.

However, adding your landlord as an additional insured makes it impossible for either of you to make a claim against one another's liability policies for damages.

If your landlord requests that you add them as an additional insured to your renters policy, they likely mean additional interest. Clarify what they mean before adding them to your policy.