One Roof, Multiple Generations
As every quirky sitcom shows us, there’s always an adjustment period when a family member moves into your home. No matter if it’s your mother-in-law or 20-something college grad, there are routines to settle into and space to rearrange.
Multigenerational living is becoming more common in America, thanks to a complex housing market and aging population. In fact, between 1971 and 2021, the number of people living in multigenerational households quadrupled to nearly 60 million, according to Pew Research Center.
But having another person (or two) and their belongings in your household can impact your property insurance coverage. Here’s a look at what homeowners should know before a family member moves in.
Talk to Your Agent
First things first: Contact your Texas Farm Bureau Insurance Agent. “It’s very important that you reach out to your insurance Agent when there are any changes in your living situation,” says Bethany Midgett, a Texas Farm Bureau Agent in Plainview. “There are so many different scenarios to consider.”
For one, some insurance companies have different definitions of who’s considered a policy’s “resident relative,” which is a relative with whom an insured party shares a residence. So, there might be different insurance considerations for an adult child than for, say, a third cousin twice removed. Also, the length of the stay could matter, Midgett says. An indefinite move-in could have a different insurance impact than a brief, three- to six-month stay.
“As an Agent, it’s our goal to educate our insureds, so — in the event of a claim — they’re not surprised,” Midgett says.
Policy Adjustments
In some cases, homeowners might want to consider increasing their liability or coverage limits. For example, if your mother-in-law is moving in with her extensive jewelry collection and beloved family heirlooms, it might be time to consider an inland marine policy, also known as a personal articles policy. That’s because, typically, property insurance doesn’t cover items such as this.
Property insurance comes with a certain amount of liability coverage, but adding another person to your household could expand this need. This coverage helps protect members of your household against lawsuits for bodily injury or property damage.
Best Practices
When in doubt, call your Agent. They are your best, strongest resource. Your Agent can guide you through a 360 Review to assess what you have — and what you need — for your new living arrangement.
“Be honest about the living situation,” Midgett says. “Then, we can guide you in the right direction, whether that be to up your liability limits or purchase another separate policy.”
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Coverage and discounts are subject to qualifications and policy terms and may vary by situation.
