The Importance Of The Name Insured
It may appear to be a minor detail, but getting the correct Insured Name on your property and auto insurance policies is one of the most important aspects of your policy.
If that is incorrectly entered, or if the name you entered is not your correct legal entity name, your policy may be invalid, you may be unable to make changes or cancel it, and you may as well be unable to file a claim.
When it comes to understanding your insurance policy, there are three types of insureds to consider:
NAMED INSURED The Named Insured on your policy is the person or organization named in the policy who is completely covered by it. Only the Named Insured has the authority to modify or cancel the policy. The Named Insured is the policy's owner and is covered by all sections of the policy. This is the person who purchases the policy, pays for it, decides which coverages to include, makes changes to it, and has the authority to cancel it. As previously stated, getting this right is critical because it can affect your claim if something goes wrong and you suffer a loss. UNNAMED INSUREDS, ALSO CALLED ‘INSUREDS’ Most insurance policies also cover people whose names do not appear on the policy; these people are referred to as the Named Insured's spouse, dependents, and so on. These insureds have some coverages under the policy, but they cannot change or cancel it, and they may not have all of the coverages listed. ADDITIONAL INSUREDS You can also name specific additional insureds on your policy. Additional insureds have an insurable interest in the insured property or vehicle because they are typically co-owners of the insured property or asset. Additional insureds typically do not benefit from the policy's full coverage, and they are unable to change or cancel the policy. When it comes to home insurance, for example, mortgage lenders frequently require homeowners to add them as an additional insured to their policy. The mortgage lender cannot change the policy, but because they have made an investment in the property, they are specifically named as an additional insured and will receive a portion of the claim settlement if the property is destroyed by, say, a house fire.
Insurance can be complicated, but it doesn’t have to be. Your broker can assist you in understanding the intricacies of your policy and its terms, as well as identifying any coverage gaps.
CONTACT YOUR EXPERT A-KAN INSURANCE BROKER ABOUT YOUR INSURANCE REQUIREMENTS TODAY.