A policyholder is the person or legal entity that owns an insurance policy. They’re the one who takes out the policy, pays the premium, and has the legal right to make a claim under the policy’s terms.
In most cases, the policyholder is also the one who suffers the loss and receives any payout. But that’s not always true – for example, a landlord may insure a property they don’t live in, or a business may insure premises they lease rather than own.
Types of property policyholders
Homeowner
A person who owns and lives in the insured property. They are responsible for keeping the policy up to date and ensuring it covers relevant risks such as fire, flood, or theft.
Landlord
A landlord is the policyholder for properties they let out. Their policy usually covers the building structure, fixtures, and fittings, and may include optional add-ons like malicious damage by tenants or loss of rent.
Business owner or company
For commercial properties, the policyholder may be a sole trader, a partnership, or a limited company. The policyholder is the business entity that insures the premises, stock, or equipment.
Responsibilities of the policyholder
As the policyholder, you’re expected to:
- Provide accurate and complete information when applying for the policy
- Notify the insurer of any changes (e.g. renovations, property unoccupied, tenants move in)
- Understand exclusions and conditions in the policy
- Take reasonable steps to prevent loss or damage
- Inform the insurer promptly if a claim needs to be made
Failure to meet these responsibilities could lead to a reduced payout or a denied claim, especially in cases of non-disclosure or misrepresentation.
Policyholder vs policy owner vs insured: what’s the difference?
These terms are often used interchangeably – and sometimes even by insurers – but they can mean different things, particularly when it comes to how a policy works and who has rights or responsibilities under it.
Policyholder / Policy Owner
This is the person or legal entity who arranges, owns, and controls the insurance policy. The policyholder:
- Pays the premium
- Has the legal right to make changes to the policy
- Can cancel or renew the policy
- Is the main point of contact for the insurer
- Is entitled to make a claim and receive any payout
In most policies, “policyholder” and “policy owner” mean the same thing, especially in home insurance. The distinction is more common in life insurance, where the owner and the person insured may often differ.
The Insured
This refers to the person, property, or interest that the policy is designed to protect. It could be:
- A physical asset (e.g. a building or contents)
- A person (in personal accident or health insurance)
- A legal liability (e.g. public liability or landlord liability)
The insured benefits from the protection, but may not have any control over the policy unless they are also the policyholder.
FAQ’s
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Can someone else manage the claim for the policyholder?
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Yes, with written permission. A Loss Assessor or trusted representative (such as a family member) can act on the policyholder’s behalf.
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Is the policyholder always the property owner?
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Not always. A business may insure a rented building, or a parent might take out cover for a property their child lives in.
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Can a tenant be a policyholder?
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Yes, for contents insurance. Tenants often hold their own policies to protect personal belongings, while the landlord insures the building.
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What if the policy is in joint names?
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If two people are named as policyholders, they both have equal rights to manage the policy, make claims, and receive updates from the insurer.
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Can I transfer my insurance policy to someone else?
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No, most home insurance policies are non-transferable. If ownership of the property changes, a new policy must be arranged by the new owner.
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Can I change the policyholder on an existing policy?
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In most cases, no. You’ll usually need to cancel the existing policy and set up a new one under the new policyholder’s name.
