Policy Owner

Glossary

A policy owner is the individual or person in actual possession of an insurance policy. In the case of renter’s insurance, the policy owner would be the renter. Often, your insurance company might mix terms. Some insurance companies refer to “policy owners” as “the insured” or “the policy holder.” Remember that these terms are interchangeable, so you could see all or some of them at one point or another when filing a claim.

Because the policy holder is the actual person in possession of the policy, it means that other people in your residence – roommates or guests – might not be covered by the policy. You should ask your agent who is covered by your policy, and when. The belongings of friends may not be contained in your policy. Also, you should not assume that your belongings are covered by someone’s insurance simply because they have a policy. This is why it’s always wise to have some form of insurance coverage – no matter if you own a home or rent one.

Understanding your policy

Insurance companies use dozens of terms that can be foreign to a common consumer. But it’s important to fully understand your policy before you purchase it. This is because consumers often assume that they have coverage in one form or another, only to find that they do not when they file a claim. The term “policy owner” is particularly important because, in general, it defines who is covered and, thus, excludes who will not be covered n the event of a claim. Before you agree to a policy, be sure to carefully review it and ask questions of your insurance agent. Don’t be shy about asking “what it?” because the “what if” situations are those that generally will result in a claim later on. Ask about your personal possessions and the limits provided within the policy. Be sure you’re comfortable with all aspects of the policy before you sign with the company.

The roommate issue

Renters need to be particularly careful to understand what is and what is not insured when they have roommates. Your policy will specifically outline who the “insured” or “policy owner” is, and your roommate will not be covered under the policy. Your relatives, however, likely will be covered. It’s your responsibility to discuss this with your insurance agent and understand exactly whom and what is covered by your renters insurance. Every one of your roommates should have his/her own renters policy that covers not only property but liability in the event of an accident. For your complete protection, make sure your policy covers both property and liability.