WEDNESDAY, OCTOBER 12, 2022
Definitions are very important in any insurance contract. Throughout a Homeowner policy, YOU and YOUR refer to the NAMED INSURED shown in the declaration AND their SPOUSE, but only IF a resident of the same household. If that spouse moves out, no coverage follows them.
The Named Insured must be the legal owner of the home, that is, the name found on the deed to the property and the occupant of the home. No other insured should be included as the Named Insured.
Other insureds may only be covered by provisions and the terms of the policy.
An INSURED means YOU and the following residents of your household…
YOUR RELATIVES – Family members are typically defined as a person related to YOU by blood, marriage or adoption that lives in your household including a ward or foster child. And any other person under the age of 21 who is in the care of any person named above.
An Insured Location means the residence premises. The part of other premises, other structures or grounds USED by you as a RESIDENCE AND which is SHOWN in the declaration.
Others who may have an insurable interest and how they should be named on your Homeowner policy…
An Additional Insured is a person that legally has an Insurable Interest in your home. Remember, only a Named Insured should represent the legal owner AND resident.
An Additional Insured might be a Trust, parent or child who holds the deed of the home but is not the resident of this household. They can earn Additional Insured status on your policy. In this example, there is typically an agreement of “life tenancy” that allows an individual, parent or child that occupies and furnishes the home to be the Named Insured w/ the legal owner listed as the Additional Insured.
A Mortgagee has just a financial interest in the property and should not get Additional Insured status, rather just the status as mortgagee.
To help you organize your thoughts, grab a sheet of paper…
Jot down the names of all those in your household.
Circle who should be the Named Insured because they are the Deeded Owner & Occupant of the home.
Underline who would be considered an Insured by definition of Other Insureds above.
Put a star next to those that don’t meet the definition of an Insured above. They don’t meet the definition of who is covered under your policy so we’ll want to find a solution to provide this person coverage for their belongings and liability associated with them specifically.
Make a note of any other legal entity, their relationship to you/property, that has insurable interest in your home. Communicate your concerns to your agent as to how you would provide coverage for this person or entity.
Please be properly protected!!
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