Three Types of Insureds Explained

Are you aware of the differences between Named Insureds, Unnamed Insureds (also known as simply Insureds) and Additional Insureds? They are often confused, but the distinction is very important to understand. 
Categories: Personal Insurance
Nov 18th, 2022 | By: CapriCMW

Although it may seem insignificant, getting the Insured Name correct on your insurance policy is critical to ensuring that you are covered as intended. If the name shown is incorrect, the policy itself could be invalid, and you may not be able to make changes, cancel the coverage, or make claims. 

Are you aware of the differences between Named Insureds, Unnamed Insureds (also known simply as Insureds) and Additional Insureds? They are often confused, but the distinction is very important to understand. 

Named Insured

The Named Insured on your policy is the person or organization that is explicitly covered by each section of the policy. This is the individual who takes out the policy, pays for it, chooses which coverages are included, and is the only person that can make changes or cancel. Again, getting this right is essential as any discrepancies could affect your ability to file a claim in the event of a loss.

Unnamed Insured a.k.a. Insured

Most insurance policies also extend coverage to certain individuals who do not appear on the policy, including the Named Insured’s spouse, dependents etc. This type of insured will have some coverages under the policy, but does not have the authority to make changes or cancel.

Additional insured

Additional insureds have an insurable interest in the property or asset being insured (i.e. part owners) and can be specifically named in the policy. They usually will not benefit from the policy’s full coverage, and also cannot change or cancel the policy. For example, it is often a requirement by mortgage lenders that they be added as Additional Insureds on home insurance policies. The mortgage lender is unable to make changes to the policy, but since they are invested in the property, they are specifically named as an Additional Insured and receive a share of the claim settlement in the event the property is destroyed by, for example, a house fire.

Your insurance broker can help you understand the ins and outs of your policy terms and identify any coverage gaps. Contact a CapriCMW Insurance Advisor today.


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CapriCMW is a proud member of the Canadian Broker Network (CBN), an alliance of Canada’s leading independent insurance brokerages representing over 50 offices, 1,500 professionals and over $1 billion in premiums. Learn more at canadianbrokernetwork.com.

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