These two terms sound pretty similar, but in insurance legalese mean totally different things. Let’s clear things up once and for all.
Many landlords and property managers are now requiring their tenants to have renters insurance. In these cases, landlords and property managers often ask to be listed on the insurance policy as an “additional interested party”.
Being an “additional interest” notifies the third-party (in this case the landlord or property manager) when the renters insurance policy is canceled or not renewed. Landlords ask for this to help them keep track of which tenants have renters insurance policies in effect.
An “additional named insured” (sometimes referred to as “additional insured”) is any person you want to share your insurance policy and protection with. For example, this could be a spouse or life partner. Bungalow even allows a roommate to be listed as an “additional insured”, so you and your roommate can share a policy. Make sure to check out our Millennial’s Guide to Renters Insurance [link] for more information on roommates.
You do not want to add your landlord or property manager as an “additional insured” because that would share your coverage with them. From a property manager’s perspective, they do not want to be listed as an “additional insured” either because that can create confusion and conflicts with their building/dwelling insurance. Landlords sometimes get confused by these two similar terms as well and ask to be listed as “additional insured” when they mean “additional interest”.