what is an additional interest in insurance
Additional Interest. Property insurance, in a particular way, guards valuable properties against harmful risks like theft, fire, or damages due to weather disturbances. Insurances as regards to floods, earthquakes, fire, and home are policy types belonging to property insurance. Since this type of insurance calls for property owners or users, there is a so called additional interest contained in the account records. Additional interest, typically, refers to a lender. In the insurance world, it means the type of position that provides permission to other individuals or institutions who were initially not named as beneficiaries in a certain policy. Basically, additional interest means the same thing as the term âadditional insuredâ in a car insurance system. It points to a person or organization previously excluded in the terms of the policy. In such a case as an auto lease, the leasing party is usually regarded as the Additional Insured as well as a lien holder on the car insurance.