Many people ask if whose name goes on homeowners insurance. To answer that question, it would be the home’s legal owner. In other words, the names stated on the deed of the said property under the person who owns the house.
When we say insured, it means the policy terms will cover the party.
If there are other insured, they will only be covered by particular policy provisions depending on the policy terms and the insured status. For example, the names listed on the deed must be the ones who live with the owner. And the house should not be unoccupied for 30 days straight, or the contract will be invalid. There are many more things that you should know about this article. It’s time for you to read on, my friends!
How Does It Matter?
Whose name goes on homeowners insurance matter a lot. The name of the insured is specified in the insurance contract. So, of course, the name of the residence owner will be there, but there are also “additional insured” that will benefit from the coverage as well. And the role of the agents is important regarding this matter because they are the ones that will review the coverage, covered risk, and assess the entities or individuals covered by the insurance policy.
The most common question often asks them if the name is to be listed in the policy. For a general rule, any entity or person having financial interest over the property should be listed as in the insured box. But, of course, when we say insured, it is the party that the policy will cover.
In case of a claim, the insurance company will benefit the named listed as insured. Without your name listed as the insured, you will not have the coverage that the policy will provide, including protection from potential lawsuits, legal assistance, and money, usually in the form of a check. Perhaps, the name listed in the homeowner’s policy as insured passed away. It would be best to have their name removed from the policy and deed of the property so that the insurance company will give the coverage to another person.
Commonly the mortgagee, lienholder, and company are also listed in the policy. However, they are not named as insured. Instead, they are listed as a loss payee or additional insured. That is because they are holding interest over your property. The aforementioned entities are notified of insurance cancellation, renewal, or any other changes made with the policy. In terms of the claim checks, they can also be listed as an additional party. Through this, the company will ensure that the claim money is used in rebuilding the house.
Homeowners Insurance
Homeowner insurance is a type of policy designed for homeowners. To understand this type of insurance policy better, let us know some important factors related to homeowners insurance.
#1. Coverage
A homeowner insurance policy is providing three coverage types. The first one is to protect the house and any other structures detached from it, like a garage, against different hazards like fire. Another coverage is offered for personal property. The other one is to provide comprehensive liability protection under whose name is insured, which is important in knowing who will receive the coverage under each type of coverage.
#2. Owners
The homeowner needs all types of coverage mentioned earlier. The owner is the only person that can be insured under the house. Non-owners that reside in the house, such as the minor children, cannot be insured under a property that is not their own. The resident spouse is usually listed as insured even if their name is not indicated on the deed. But for the spouse to be insured, they must be living in the house insured by the policy.
#3. Other Insured
Another category in homeowner insurance is other insured. One common example of this is the children that reside in the house. Some other individuals included in this category are relatives like siblings or parents living in the house.
All of them are cover under both comprehensive liability and personal property provisions. In addition, perhaps you live with any person unrelated to you, such as a foster child below 21 years old, who will also enjoy similar coverage.
But the owner’s employees, like a housekeeper, for example, are only covered by the personal property section. The visitors and guests can also be covered if the homeowner has requested this when the policy is acquired. But only the personal property provision can cover for them.
#4. Death of the insured
If the insured person dies, the property is insured. But this will only be temporary. If the policy period ends and is not renewed, the policy will not be automatically transferred to the heir. The heir himself needs to talk to the insurance provider about the insurance coverage.
It’s A Wrap!
When it comes to whose name goes on homeowners insurance, the insurance provider ensures that the listed name is interested in keeping the property in good condition. Meaning to say, the owner cannot sell the house. It is also expected that the insurance policy coverage to the house will continue despite a transfer of ownership.
In such a case, the new owner will be listed as the owner of his policy, different from yours. Regardless, you can go and read this one titled “What is coercion in insurance?” Regardless, that is all. Thanks for stopping by!