Shared-Space Living Arrangements and Your Insurance
Is Your Living Arrangement Covered?
In years past, most households were composed of a husband and wife. Times have changed and households have become comprised of many mixes of people – married couples, couples living together, friends, roommates, and more.
Often, when economic times get tight, people decide to seek a roommate to help with living expenses. If you have someone living with you that is not related to you, there are a couple of limitations in the standard homeowner’s policy of which you should be aware.
There is no personal liability insurance for individuals residing in the home who are not related to the person whose name appears on the homeowner’s policy’s declaration page.
For example, if your roommate or significant other has a dog that bites a guest, there would be no personal liability coverage for the roommate / significant other, and they would probably be the primary person to name in a lawsuit. However, the person who is named on the insurance policy would have protection.
What if the home burned down? Anyone living in the home that is a “non-relative” would have no coverage for his or her personal property lost in the fire.
The best solution would be for the roommate/significant other to purchase a renter’s insurance policy. The policy would then provide him or her liability and property protection. Of course, if the home was purchased / deeded in two people’s names that were not related, then the insurance policy would need to name both of them as named insured on the declaration page, providing them both with the same coverage.
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