Tuesday, June 30, 2015
Multigenerational households are fast becoming the norm, with many families housing three or more generations under one roof. While this can be beneficial financially, multigenerational housing situations present some unique insurance considerations. According to the National Association of Insurance Commissioners (NAIC), it is crucial for multigenerational households to evaluate their insurance when a new resident moves in.First, notify your insurer of your new circumstances and find out what your homeowner’s policy covers. Standard policies typically protect residents from fire or theft, but protection of personal possessions (including big-ticket items) may require additional coverage. When assessing your coverage, consider how long the family member plans to live with you.
Remember that dependents, such as college students, are covered under a parent or guardian’s policy, generally up to 10 percent.
If your new housemate is bringing a pet into the mix, ensure you have adequate liability coverage.
If your new household addition will be paying rent, he or she may want to obtain renter’s insurance. Policies are relatively inexpensive.
Source: NAIC
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