When the mortgage of the house has been taken in joint name, or the house or dwelling unit is held jointly; them it is mandatory to have a Joint Homeowners Insurance Policy.
Having a joint policyholder has several advantages, such as:
- The premium can be split among the joint policy holders.
- It allows the other person also to initiate a claim. So in case if one of the policy-owners is not able to file a claim due to any reason, the joint holder can apply for the claim and pursue the matter independently.
- Joint Homeowners Insurance Policy also helps to lower the claim, in case the other policy holder has better credit and insurance ratings.
Sometimes the mortgage banks insist on having their name put on the insurance deed as joint policyholders.
This is to ensure that they are also aware in case a claim is made; or they can also independently make a claim.
It also helps them get alerted in case the insurance policy has lapsed, or it is due for renewal.