Additional Insured issue

[John McIntyre]

I have an insurance client who owns a very small beach front home but does not own the land, she leases it.  Now the lessor is requiring that the building owner add them as "additional insured with respect to liability".  The insurance carrier is declining to do so but will only list the lessor as an "additional interest".  

The insurance company is saying they won't do it because they are only insuring the building not the land and therefore the landowner has no insurable interest to be added.  I asked about the possibility of someone getting injured on the land and the insurance company said "then there would be a claim" but wouldn't budge on adding the lessor.  My client is frantic because the lessor says they won't renew the lease unless they're added as an additional insured.  Not sure what to do.  Due to the small value of the house and proximity to the water I have no other insurance markets for the property.