In today’s job market, it is more common than ever for young adults to live in family owned or secondary residences. Whether they’re saving for an apartment, paying off student loans, or working remotely, this living arrangement can unintentionally create insurance coverage gaps many families don’t realize exist. It is essential to understand the implications for you and your family.
As defined in most insurance policies, a “Household Resident Relative” is a person related by blood, marriage, or adoption who resides in the insured household. This may also include relatives residing in a secondary residence–it just depends on the wording of your own policy. These are relatives who intend to live in the insured home full-time, not just to visit or stay temporarily. It is important to know who in your home is considered a “Household Resident Relative” to ensure that they are covered by your policy.
Most policies automatically consider someone a “Household Resident Relative” when they are under 25 and still rely on parents for housing or financial support, even if they live part-time at school or travel often.
Once beyond 25, a “child” living in a secondary or primary family home is not covered by most insurance policies. If the property is in the name of a trust, adult children living in primary or secondary residences need to have their own renters’ insurance; otherwise, there can be a gap in coverage.
Contact your insurance agent and review your policy. Make sure the relatives in your home are properly protected by insurance. Be sure to review all your policies and see how each one defines a “Household Resident Relative.” This is the time to determine if you need separate policies for your young relatives or if your current policies can be updated. Don’t assume anything and always confirm your coverage.
Cross Private Client is here to help you understand how your insurance policy can best serve you and your family. Connect with us today to ensure your policy protects all your relatives.
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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.