Policyholder

A policyholder is the one who owns the insurance policy. So, if you buy an insurance policy under your own name, you’re the policyholder, and you’re protected by all of the details inside.

As the policyholder, you can also add more people to your policy, depending on your relationship. Most policies automatically cover all residents of your household who are related to you by marriage, blood, or adoption. While they won’t be “policyholders” necessarily, they will be covered under the same policy as yourself as named insured

You can also add extra people that live at or have a financial interest in your place – these extra people are referred to as additional insured.

Pro tip: Always take into account the stuff that additional people on your policy own (other than you, the policyholder) to ensure you all have enough cover!

Is there a need for additional cover?

Ideally, anyone outside of your immediate family (read: anyone other than your mum, dad, brother, sister, children, grandparents, etc.) should generally seek additional cover.

This isn’t because you feel any less close to them. It’s so you’ll all have enough protection should anything happen.

So if you’re living with a second cousin or another distant relative, it’s probably better that you each get your own policy. If you’re living with your sister, just make sure you buy enough cover for all of your (and her) stuff! 

Also, keep in mind with two policies, everyone will have their own personal liability protection which is important!