Being a Named or Additional Insured Not Always Necessary for Coverage

...insured on a property coverage form when there is an insurable interest, in certain situations a person or entity may still be able to obtain insurance payment following loss even when that person or entity is not an insured.

The way in which insurance policies are structured today, coverage can apply to non-insureds in a variety of ways. Of course, having named insured status may be more advantageous simply because insurers are precluded from exercising their right of subrogation against insureds. In fact, non- insureds, unlike most insureds, usually are only covered on a limited basis, for a limited amount.

What is important about the coverage of non-insureds is that while policy language is the controlling factor, property policies generally do not contain restrictions to the effect that loss to the property of non-insureds does not become payable until an insured also sustains loss and decides to make a claim. Such an opinion without substantial support is unreasonable and should be viewed as self-serving.

Adjusting Today Basis for Institutes CE Courses

The Institutes, the leader in providing knowledge solutions for risk management and the property/casualty insurance industry, offers continuing education courses based on technical information compiled from issues of Adjusting Today . The courses — “Valuing a Property Insurance Claim” and “Natural Disasters: Coverage Issues”— include seven modules each and are approved for credit by insurance departments in most states. They are offered to property insurance producers, adjusters or both, depending on the state, for up to three continuing education credit hours per course. More information is available at


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Ronald A. Cuccaro, SPPA


Sheila E. Salvatore

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ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. ADJUSTING TODAY View our entire catalog of back issues, download PDF versions, subscribe and contact the editor.

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The way in which insurance policies are structured today, coverage can apply to non-insureds in a variety of ways. Mr. Malecki was a principal of Malecki Deimling Nielander & Associates, LLC, an insurance and risk management firm. Over a career that spanned more than half a century, he held the titles of insurance underwriter, broker, insurance company claims consultant, archivist, historian and teacher. Donald S. Malecki, CPCU ABOUT THE AUTHOR