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What Is A Policyholder?

In insurance, the insurance policy is a standard form of contract between the insurer and the insured. The owner of the insurance policy, the one who purchases it, is known as a policyholder. The policyholder makes sure that the insurance coverage is paid and determines the claims which the insurer is legally required to pay.   The insurer charges a premium and in exchange covers the loss of the policyholder caused by perils. You as a policyholder need to assign beneficiaries or add them later and also make changes to the policy as your financial or life situation changes with time. Policy Holder Source @romaindancre  

What Are The Different Types Of A Policyholder

You can be a policyholder of one of the following insurances but this list is not exhaustive.  

Car Insurance Policyholder

When you purchase a car insurance policy, you as a policyholder have to pay the bill or premium for the insurance coverage and manage the auto insurance policy. In an auto insurance policy, the policyholder is also known as the 'Named Driver'. Your identity will be included as part of the basic information regarding the car insurance policy.   Nowadays, it is very common that more than one licensed driver of a vehicle is covered by the same auto insurance policy, especially when multiple drivers are living under the same roof.   As a policyholder, your car insurance covers the passengers in your car but you can have additional people mentioned as 'Listed drivers' on the car insurance policy to be covered as well while driving. However, the listed drivers are not considered as policyholders so they can’t:  
  • Determine the status of any other drivers mentioned in the car insurance policy
  • File claim forms
  • Check claim status updates
  • Access billing details
  • Change the terms of the policy
  • Pay the premium
  • Get the claims paid to them
 

Rental Insurance Policyholder

While the landlord or owner of the building you live in likely carries insurance, that insurance only provides coverage for the building itself and not your personal property inside that building that can be your clothing, furnishings and electronics.   As a policyholder of a rental insurance policy, you are offered protection for your personal property at your place of residence against covered losses such as:  
  • Lightning
  • Wind or hail
  • Fire
  • Theft
  Rental insurance is further subdivided into two sections. One is the property coverage which does not cover the building you live in or other structures on the property. It only covers the policyholder’s personal belongings inside that building.   The second part of a renter's policy provides liability and medical payments coverages to the rental policyholder. Liability coverage protects you and your guests from unintended damage to your rental property, or for an accident that occurs in your home.   Medical Payments Coverage pays for medical bills incurred by guests injured on your property. The coverages also include any injury that is caused by you to someone else while you are out of your home.   Rental insurance covers your spouse and family members living with you. However, not everyone is included in the coverage. For example, you may have roommates that are not covered. Therefore, you as a policyholder need to add them to your renter’s insurance to protect them.

Homeowners Insurance Policyholder

Your home is probably your most prized possession as well as being your most valuable investment. Therefore, it only makes sense to protect that investment with some kind of insurance. Just like rental insurance, the standard homeowners’ insurance is divided into two sections i.e Property coverage and liability coverage.   A homeowners insurance policy protects and covers the loss to your home’s structure and all the things inside it. If you are a policyholder of homeowners insurance, all members of your household have coverage for their personal property losses. However, you have to make sure that the coverage is more than enough to reimburse everyone’s personal property.

Life Insurance Policyholder

The life insurance policy works a bit different than the above-mentioned policies. You can be the policyholder of your life insurance but your loved ones or the nominated ones are the insured parties as they will benefit after you pass away. However, you have to add the name or names of your loved ones to the policy as the beneficiaries.

Conclusion

Policyholders are the people who buy insurance policies from car insurance, rental insurance, homeowners insurance, or life insurance companies. The policyholders pay the premium on all insurance products to cover themselves and their immediate family members. However, they need to pay more to add non-family members to the insurance policy for the coverage.
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