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9 minute read Published on Jan 23, 2026 by BrokerLink Communications
When you're purchasing home insurance, you may be asked to add an additional interest or an additional insured to your policy. But what does that mean?
An additional interest is usually a third party, such as a mortgage lender, who will need to be notified about your insurance coverage, but doesn't have the right to any claims. An additional insured, on the other hand, has shared rights to your insurance policy, such as a co-owner of the property.
Adding either to your home insurance ensures that the right parties are informed and protected, with little to no extra cost to you as the policyholder.
Have more questions? BrokerLink has got you covered. We'll give you a quick refresher about home insurance, dive deeper into additional interests and insureds, and more down below.
Before we get into additional interest home insurance, let's quickly review what a standard home insurance policy entails and what it covers:
Dwelling coverage: Dwelling insurance protects the physical structure of your home from damages that result from insured perils, including fire, lightning, smoke, high winds, falling objects, explosions, and more.
Contents coverage: Contents coverage is designed to protect policyholders against losses relating to their personal belongings.
Personal liability insurance: Personal liability insurance safeguards against third-party claims alleging property damage or bodily injury relating to your home. It covers the cost of repairs, replacements, medical bills, legal fees, and more.
Additional living expenses: If your home is damaged by an insured peril and is uninhabitable, additional living expenses will cover the cost of accommodations, meals, and transport while you're unable to live in your home.
Most Canadians with mortgages are required to purchase home insurance, particularly those who purchase their property with a small down payment of less than 20%. As of 2024, 29% of Canadian mortgages are insured through providers like CMHC, Sagen, or Canada Guaranty. These policies are meant not only to protect the homeowner but also the lender in case the borrower defaults.
This lender protection continues even after you move into your home, which is where additional interest comes into play. It essentially gives your mortgage lender access to the status of your home insurance, without giving them actual control over your coverage.
As we briefly mentioned, an additional interest in your home insurance policy is a third party who has a vested interest in your insured property.
Most commonly, this would be a mortgage lender who needs to be notified if the home insurance policy has been changed, is cancelled, or lapses due to non-payment. They don't, however, have any right to file claims or access the details of your insurance policy.
For example, if your house suffers flood damage and you file a claim with your insurance company, your provider will notify any additional interests listed. But they won't be able to file a claim themselves. So, why is this important?
Lenders want to know that the property they have a financial stake in is always protected by active insurance.
Without being listed as an additional interest, your insurer isn’t obligated to keep them informed if anything happens.
If your home insurance lapses and your lender isn’t notified, it could trigger force-placed insurance, which is expensive and added to the homeowner's mortgage.
Fortunately, opting for additional interest home insurance is free in most scenarios. All you have to do is provide your lender's name and address to your insurance provider, and they'll add it to your insurance coverage.
An additional insured is different from an additional interest. This party has a legal relationship to the property and is provided certain rights under the insurance coverage, including the ability to file claims. For example, you may add an additional insured if:
You co-own a property with a sibling, partner, or friend.
You have a property manager who oversees the daily operations of the rental property.
You live in a multi-family home and share liability.
Let's say you are legally married and you and your partner buy a cottage together. You arrange the insurance policy, but your partner's name doesn't appear on the home insurance coverage. A storm causes roof damage to your cottage. So, you file a claim. But because your partner wasn’t listed as an additional insured, they can’t access the policy or make decisions, even though they own half the property.
Therefore, having your partner added as an additional insured would help you avoid this issue. Not that adding a named insured to your property insurance policy may require a small fee.
Adding an additional insured endorsement and an additional interest to your homeowners insurance essentially protects everyone's financial stake in the property. So, knowing when to add them is key:
Below, we discuss when to add an additional interest:
You have a mortgage.
You’ve recently refinanced your home.
Your home is covered under default insurance (required with a less than 20% down payment).
Below, we cover the circumstances for adding an additional insured:
You co-own a property with a person or entity not listed on the insurance policy currently.
You live in a multi-family or shared property.
You have a business partner in a rental or investment property.
You’ve hired a property manager who might be exposed to liability.
In commercial property instances, such as investment real estate or property management, including additional insureds to ensure liability coverage extends to all parties involved is often mandatory.
To solidify the benefits of an additional interest home insurance policy, let's look at some different examples below:
Situation: You buy a condo with a 10% down payment, so your mortgage is insured. Why it matters: Your lender needs to be listed as an additional interest to be notified if the policy is ever cancelled or changes. Benefit: Avoids the forced insurance policy from being issued, which can increase your mortgage amount.
Situation: You and your sibling co-own a vacation home. Your sibling buys insurance but doesn’t add you as an additional insured. Why it matters: If there’s damage to your vacation home, you may not be covered, even if you co-own the home. Benefit: Listing both parties on the property policy ensures shared liability and access to claim settlements.
Situation: You rent out your basement suite to a tenant who also runs a small home business. Why it matters: To protect both parties, you add the tenant as an additional insured. Benefit: It covers your tenant’s liability and helps avoid gaps in claims that may arise from any shared spaces. In each case, the right listing prevents surprises—and protects everyone involved.
Adding additional insured or additional interest coverage to your home insurance policy ensures the right parties are recognized and protected. This quick guide explains the differences, when each is appropriate, and what information you’ll need:
Contact a BrokerLink advisor and explain who needs to be added and why. Whether it's your lender, co-owner, property manager, or another party with an insurable interest, we'll help you determine what the best move is for you.
You'll then need to provide their full legal name, contact information, and relationship to the main policyholder.
A BrokerLink advisor will then update your policy and issue your additional insured endorsement certificate that outlines the role of the party added. The documents will then be sent to the additional insured party within 1 to 2 business days.
Adding an additional interest to your insurance policy (aka your lender) is free of cost and won't affect your insurance premiums. On the other hand, adding an additional insured may involve a small administrative fee or a slight increase in your premium. Why? Because each person you add as an additional insured leads to more risk exposure. That said, there are some limitations to consider:
Listing someone who isn’t financially tied to the property could cause complications.
Adding an additional insured means they have legal rights to any claim settlements. Make sure you trust them and understand the potential implications of having them included.
Your coverage limits may need to increase to cover shared liability.
If you have questions about costs, let a BrokerLink advisor know, and they'll help you adjust your coverage limits if needed. Remember, being proactive with your insurance policy and ensuring it's accurate protects everyone involved and ensures peace of mind.
Yes, if you have a mortgage, your lender will almost always request that they be added as an additional interest on your homeowners insurance. This ensures they'll be notified if your policy is cancelled or changed. It's a standard process for most mortgages, especially if your mortgage is insured by CMHC or another similar provider.
Yes. Many landlords will ask their tenants to list them as an additional interest on their tenant insurance policy. Remember, this won't give your landlord rights to any claims you may file. It just means they'll be notified if you cancel the policy. It's a way for them to confirm their tenants have active coverage during their lease agreement.
No. Adding an additional interest does not affect your premium. However, adding an additional insured, who has the right to any claim settlements, may slightly impact your insurance costs.
To remove an additional interest from your homeowners insurance policy, you can contact your insurance company directly or speak with a BrokerLink advisor. You'll need to provide documentation that proves the partner no longer has a financial interest in your property before the request is approved.
No, not directly. An additional insured can file claims and access your policy information, but they can't make changes to the policy itself unless the primary insured has authorized them to do so.
You'll need to provide the party or entity's legal name, mailing address, and relationship to the property.
Whether you share a home with a co-owner, are renting a portion of your property out, or are meeting mortgage requirements, adding the right parties to your home insurance makes all the difference.
An additional interest ensures lenders or landlords are kept in the loop without granting them control over your coverage. On the other hand, an additional insured goes one step further, offering access and protection to someone with a legal or financial tie to your property. Each plays a distinct role, and knowing the difference will help you avoid future issues with claims, coverage gaps, and possible legal misunderstandings.
Not sure who needs to be listed on your homeowners insurance? BrokerLink is here to help. Our experienced brokers can help walk you through your situation, make recommendations, and help you change your policy accordingly.
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No, an additional interest on a home insurance policy cannot file a claim. They are not covered by the policy in any way and therefore do not have the same rights as the policyholders, such as filing a claim. In fact, they do not have the power to make any changes to the home insurance policy. Rather, they will simply be notified if any changes or cancellations are made by the policyholder.
Yes, an additional insured on your home insurance policy can file a claim if they are subject to a third party lawsuit. While additional insureds are covered under your home insurance policy, it is important that all additional insureds understand exactly how they are covered as not all covered may apply. Read the terms and conditions of the policy carefully to learn about any relevant exclusions and limitations for additional insured.
Adding an additional interest to a homeowners insurance policy is typically free of charge. However, we recommend confirming the cost with your insurance provider directly. If there are no additional interests on your home, there may be a discount as you are considered to be financially stable and have the means to maintain your home.
Unlike additional interest, you might be charged for adding an additional insured to your homeowners insurance policy. The exact cost varies but may be roughly $50. Depending on the company, this fee could be per additional insured or a one-time flat fee for the privilege of adding as many additional insureds as you want. Keep in mind that this fee must be paid by the policyholder and is not the responsibility of the additional insured.
If you have any questions, contact one of our local branches.
