Whats differance between Additional named insured vs. lienholder for property insurance?
OK, “leinholder” is property for mobile property. It means, if that particular piece of property is damaged, the check gets made payable to the leinholder and the owner jointly. Mortgagee is for “real property”, or real estate. There are MORE protections offered to a mortgagee than a leinholder – like if there is fraud, such as arson, the MORTGAGEE still gets paid up to their interest, the insured gets NOTHING, and a lienholder would get nothing, also. An additional named insured, is a part policy owner. You’ll have a hard time getting an insurance company to name a partial interest, such as leinholder or mortgagee, as additional named insured. Usually you see it on something like a triple net lease, when a commercial landlord requires the commercial tenant to carry the building insurance as part of the lease, then name the landlord as “additional named insured”. It’s a rotten way to protect the landlord’s interest, as the tenant can let the policy lapse and then they’re uninsured afte
