By James Small
Your insurance contract is very specific in its definition of a Named Insured!
As agents, our role is to review your coverage, review the covered risk and assess the people or entities covered by the policy. Every day we get questions from our insureds regarding whose name should be or could be listed on the policy. The rule of thumb is that any person or entity with a financial interest in a business or a property should be listed as a named insured. The named insured is the person or entity covered by that policy.
Why is this important you ask? If there is a claim, the check will come in the name of those listed as named insured/s. If you or your business is not a named insured, you will not receive the money and could potentially lose out on any coverage a policy provides such as legal assistance or protection against potential lawsuits.
Business entities that close out one business name should not remove that defunct business name or the protection of insurance may not be available because a claim can be filed at any time. The opposite is true for homeowners policies: if someone passes away, it is often best to remove them from the deed and then from the policy so that the insurance covers the right person.
Your finance company, lienholder or mortgagee should be listed on your policy but will not be a named insured, they will be listed as additional insured or loss payee as they do hold an interest in your home or business. These entities are then notified when your insurance cancels, renews or changes in any way and they can be listed as an additional party on claim checks. This way they can ensure the claim monies are being used to rebuild a home or for appropriate business use.
Hometown Insurance is here to help you with your insurance education and needs. Call us if you would like to review any of your insurance policies: home, auto, business, life & health! We are appointed with many of the major insurance companies and do the shopping for you!
Call your Hometown licensed agent today at 1-800-568-SAVE (7283) or email service@hometowninsurance.com !
My name is on the deed of the home I live in , but the insurance policy is under my sister’s name , she is also on the deed, but does not live in the home, how does effect the policy?