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House Guest Insurance
I have had several clients, recently, who found themselves in an interesting position regarding insurance coverage for their personal property…
One client, from Appleton, WI was going to be living with a friend for an undetermined amount of time while looking for a house to purchase. They were looking for property and liability insurance coverage on a storage unit they had rented for their personal belongings. What they didn’t realise was that they would not have coverage on the personal property they kept at their friend’s house. Most homeowners insurance policies exclude personal property for any adult who is not related to the named insured(s). The coverage they needed was easily obtained through a renter’s insurance policy with Ellington Mutual.
Another client from Waukesha, WI was staying with family while building a house. In this case, however, the property they kept at the relative’s house was covered under the family member’s homeowners insurance policy because they were close relatives. However, as in the first case, they still needed property and liability coverage on a storage unit they were renting for the remainder of their personal belongings. In this case, we obtained the needed coverage by obtaining additional off-premises coverage on the policy covering the construction of the new home.
Note that not all policies are created equal. Your coverage depends on your individual policy. As always, if you have questions regarding your coverage, you should contact your agent. If you have questions, or would like an insurance quote, don’t hesitate to contact us!
Nicholas,
First of all, it’s great that you’re reaching out like this to help a friend in a time of need. You must truly be a great friend!
Whether or not your friend is covered under your Home Owner’s Policy depends on your policy’s definition of “Insured”. If you look into the “Definitions” section of your policy, you will find your insurance company’s definition of “Insured”. Typically this is you, your relatives if they are living with you, and persons under the age of 21 if in your care or in the care of relatives living in your home.
Chances are, your friend (or his property) is not covered under your current policy. Some companies will allow you to add additional “named insureds”. If your insurance company doesn’t offer this option, another option would be for your friend to obtain a Renter’s Insurance Policy (regardless of any contract or payment of actual rent). Your insurance agent should be able to help you with these options further.
Good luck with your situation. Let us know if we can answer any other questions, or contact us if you would like a quote. I hope your friend is able to get back on his feet soon.
I have a friend staying with me long-term. He is not paying rent, and we haven’t made a contract for the living arrangement. I plan to let him stay until he’s able to get back on his feet. Is there some kind of liability insurance to cover his visit? Does homeowner’s insurance cover his staying with me?