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Kids Moving Back? Renting Your Home? Update Your Insurance!

2022-07-20

 

3460352_SDo you have more people living in your home these days? Over the last several years, many people are now living with their adult children and/or grandchildren. So-called multi-generational households are proliferating. Nearly 60 million Americans now live in a multi-generational home, according to the Pew Research Center.

In other households, homeowners have added roommates or Airbnb guests. Others have begun renting out vacation homes while they aren't using them. If you're thinking about doing any of those things, it's time for an insurance checkup. Having the right type and amount of insurance for your unique circumstances is an important way to protect yourself and your loved ones.

Here are two ways your insurance coverage may be affected by additional people living in or using your home:

Homeowner's insurance. You'll want to let your insurance company know if you are renting out your home — or a portion of your home - to someone else. Depending on the circumstances, you may need a rider to your existing homeowners insurance policy or an additional policy covering a business operation in your home. Standard homeowner's policies do not cover losses due to rental activities. By having the right type of insurance, you're adequately covered in the event your renter is injured on your property or for any other type of claim. If you're having adult children move back into your home, you'll want to make sure their belongings are covered in the event of a loss, too. (Paying tenants in rental properties generally must purchase their own renters insurance policies to cover their own belongings.)

Auto insurance. If you lend your car to someone else and they get into an accident, your insurance will cover it. However, as the policyholder, that accident will go on your insurance record, not the driver's. Be cautious about who you lend your vehicle to and make sure your insurance company knows about any regular drivers of your vehicles. If your adult children have moved back in and are driving your vehicles regularly, you'll want to let your insurance company know. As a general rule, you'll want to let your insurance provider know about all regular drivers of your vehicles.

We'll help you find the right coverage and the most cost-effective solution to fit your unique circumstances. Have questions about your auto or homeowners insurance? We can help make sure you have the right coverage for you and your family. Give us a call today: (763) 544-3390.

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