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Like an Additional Insured, a certificate holder is a third party that may be named on your COI. Unlike an Additional Insured, a certificate holder has no protection or coverage under the policy.
Certificates of insurance are completely free, so you can provide proof of insurance at no cost to anyone who needs to see it. Just make sure your policy is active and youre up to date on your insurance cost payments.
Coverage is limited to the activities of the named insured approved by the insurer. Mortgagee and Lenders Loss PayeeExtends rights in property coverage to the certificate holder. The certificate holder will have the contractual right to receive payment of any insurance proceeds.
Lets make this even clearer: A certificate holder is given proof of insurance from another party. They have no coverage under the insurance policy itself. An additional insured is a person or entity added to an insurance policy and actually protected under that policy.
A declaration page is an internal document for a policyholders reference, whereas a certificate of insurance is an external-facing document used to present evidence of insurance coverage to or for third parties.
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