Owning a home gives you the opportunity to allow friends and family to stay in your house for as long as you'd like. Having temporary or permanent guests can be great, but what would happen in the event of an accident or catastrophe? Would your current homeowners insurance policy cover your friends and family, or would they be excluded?
An independent insurance agent can answer your questions and provide you with unbiased, expert advice about your homeowners insurance policy.
If Family or Friends Move Into My Home, Do I Need to Add Them to My Homeowners Policy?
The short answer: If they’re family, you don’t have to add them to the policy. If they’re friends, you may need to add them to your policy or choose another type of insurance to cover them. However, insurers differ in the way they handle individuals moving into your home, so it's always best to review your policy and get help from an insurance expert first.
Who’s Covered by My Homeowners Insurance Policy?
A homeowners insurance policy is written to cover the property where the title owner of the property resides. It also provides liability coverage if a member of the household is liable for causing an injury or property damage to a third party.
Generally speaking, a home insurance policy covers the occupants of the home, including your spouse, your children, and any other dependents.
In most cases, when your children or family members reside in the same home as you, they are insured under the definition of the homeowners insurance policy. Insurers define these individuals as “household members,” or immediate or extended family members who live in the same home as the policyholder. This includes:
- Spouses
- Children
- Parents
- Grandparents
- Siblings
- Aunts
- Uncles
- Cousins
- Foster children
- In-laws
- Stepfamily members
Also, note that a household member may be defined as a relative who once lived in your home and intends to continue living there. The most common example is an unmarried dependent child who is attending a college/university away from home, but other situations also qualify.
Speak with an independent insurance agent to determine who qualifies for coverage under your current policy.
When Will Someone in My Home Be Excluded From Coverage Under My Home Insurance?
A homeowners policy is fairly comprehensive when it comes to protecting your family members. However, there are a few cases where someone might be excluded from coverage:
- If the property owner moves out of the residence, family members are no longer insured under the definition of most policies.
- Non-related individuals are typically excluded from homeowners policies unless they’re specifically added to the policy. See “If a friend moves in with me, are they covered?” below.
If you're unsure of how your friends or family are covered under your home insurance policy, contact an independent insurance agent. An independent agent can review your policy and help you change it in order to accommodate those who live in your home.
If a Friend Moves in With Me, Are They Covered by My Home Insurance?
If a friend moves into your home, they may need to purchase a renters insurance policy that covers their personal property and liability risks.
If a friend has a financial interest in your home and is listed on the deed, it should be possible to add the friend to the home insurance policy as a co-policyholder or an additional insured.
What If I Rent Out My Home to Several Non-Related People?
If you rent out your home to others and do not live there yourself, you'll need to purchase a dwelling or landlord insurance policy that covers the structure of the home and any of your personal property that's on the premises. Landlord insurance also provides liability coverage for you in case someone is injured at the home.
Your renters will need to purchase renters insurance to cover their own belongings and their own liability risks.
What Coverage Do I Need If I Don’t Live in My Home But Other Family Members Do?
A homeowners insurance policy should only be in place when you own and reside in the home. Having another home as your primary residence while housing other individuals typically requires two policies: a homeowners policy for your primary residence and a landlord insurance policy on the home where others live.
For family members who reside in the home that the primary homeowner doesn’t, a renters insurance policy is the best course of action. While they may not be paying rent, this policy is geared towards individuals not covered under your primary home's insurance policy. In turn, the policyholder should have dwelling coverage on the home to protect it and its contents.
There’s also an alternative option where the relative’s name would be added to the deed of the property. This would enable that individual to obtain homeowners insurance. However, changing ownership is a big deal, but it may be a wise decision if you intend to house these individuals long-term, such as an aging parent or disabled dependent.
To know what you should do in this case, contact an independent insurance agent. They can advise you on how to be compliant with your insurer and get the coverage to meet everyone’s needs adequately.
How Can an Independent Insurance Agent Help Me Get Homeowners Insurance?
Independent insurance agents have access to multiple insurance companies. They can help you comparison shop and find the best coverage for your needs and budget.
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