What is an "additional insured" and how does it affect an insurance claim?

An additional insured is someone else that is named on your policy as an insured.

I'm assuming that you have two mortgages on this house and the two additional insureds will be the two banks or mortgage companies that hold the lien.

The insurance company is making the check payable to you and to the lien holders to make sure the lien holders get paid. If the house were a total loss and you chose not to rebuild, this would make sure that the lien holders get paid for the loans that they have.

If you are rebuilding, then you'll need to get the lien holders to sign off on the checks so you can pay the contractors.

It's a huge inconvenience. However, it is for the protection of the lien holders that the checks are issued that way. Otherwise, the home owner could cash the check, not rebuild and let the property go into foreclosure and not pay the bank off. The insurance company is obligated to make sure the lienholders don't get left holding the bag, so to speak.

As long as you are rebuilding, the lien holders shouldn't have any problem signing off on the checks. They will, however, want to make sure the contractors get paid so there won't be any mechanics liens placed on the house for work that is being done by contractors.

added insured is an certain social gathering extremely named decrease than an coverage that's no longer directly lined as an insured decrease than the coverage of yet another, yet for whom the named insured's coverage provides you a undeniable degree of protection. An endorsement is typically required to effect added insured prestige. The named insured's impetus for offering added insured prestige to others could be a prefer to guard the different social gathering because of the fact of an intensive courting with that social gathering (e.g., workers or participants of an insured club) or to conform with a contractual settlement requiring the named insured to realize this (e.g., shoppers or proprietors of property leased by ability of the named insured). on your case the declare verify would be named you and the the different 2 added insureds. pass to the loan and recommend the verify. i'm hoping that this answer help you!!!

In the U.S. normally additional insureds are mortgage companies. Their name will be on the check because legally they are co-owners of the property. If there is a loan on the property the mortgage company is always listed on the policy and on checks for damages to the property.

If your company issues a check for damages to the building itself the mortgage company has to be listed.

If the check is for your damaged personal property (clothing, TV etc) then the check should be in your name (and spouse if applicable) without the mortgage company.

Is this a commercial fire policy, or a homeowners? Additional insured is an endorsement on a liability section - NOT a property section. See other posting . . .