A new development in home building is multigenerational homes. Multigenerational homes create separate living spaces, similar to apartments, within a home for aging parents, older children, or even a close friend. While they are great for keeping the family together, their configuration does sometimes create concerns when it comes to home insurance, particularly when it comes to who and what is covered. Given the importance of homeowner's insurance, it is essential that you get your coverage right. If you have a multigenerational home, here are some insurance factors to keep in mind.
If you are unsure as to whether or not your parent, child, or the other person living with you is covered under your homeowner's insurance policy, the first thing you need to consider is the relationship of the individual.
Typically, insurance companies will automatically cover anyone who lives in the household that has a legal familial relationship, such as a blood relative, a spouse, or an adopted child. If the person living in the separate unit within your home is related, not only can you rest assured that their belongings will be covered, but they will likely also have liability protection in the event they cause damage to the home.
However, if the person is not related to you legally, their belongings might still be covered under the policy, but they will not be covered under the liability component or the injury component. A separate renter's policy may be necessary for them. Contact an insurance agency for more specific information regarding those living in your home.
Full Home Assessment
If the person in your home is covered under your policy, it is important to calculate the value of their items. In terms of household belongings, insurance companies allow policyholders to choose an amount of coverage.
The coverage amount should account for the value of all the items in your home as accurately as possible. This is important because if you do not add the value of their items to your coverage amount and you experience a total loss, you will not be compensated for their items.
When you perform your home inventory assessment, make sure that you speak with those living with you to get an estimate on the value of their items to ensure your home inventory value is on point.
If you have additional questions about getting home insurance for your home, be sure to speak with an insurance agency for assistance.