Under whose insurance are your grown up children covered?

Do you now consider your children as adults? Adult children may think that when a loss happens, their property will be covered by their mom or dad’s homeowners or auto policy.  This is not always true and finding this out after a major loss can make the loss situation even worse.  A relative is only covered if he or she is a full-time resident of the insured’s household.  Even if the child lives right next door, the parent’s insurance policy will not spread its coverage to take care of the belongs of a child who is now considered an adult. Blood is thicker than water but insurance contracts are thicker than blood. This may seem harsh but know that insurance contracts are meant to handle sources of loss that can be identified.

Example: The O’Neill’s home and cars have been insured for 20 years. In the last five years, the O’Neill’s children have grown up and moved into their own households. According to their insurance agencys home and auto policies, the insurance premiums and two policies that covered the original family’s two cars and one home, now cover the original home and cars PLUS the following:

  • The Tucker O’Neill sons apartment and car
  • Daughter Clara O’Neills home and two cars
  • Other son Jerry’s home, seasonal home and two cars
  • Other daughter Debbies apartment and car.

Besides covering all of the property, the O’Neill parents’ policies ALSO cover everyone’s personal legal liability. You are probably thinking wow! What a bargain for a single auto or homeowner policy to be stretched this far! It is not likely that the insurance industry could survive such flexibility.

Being independently insured

Yes, insurance is not usually a priority for new adults who are now living on their own. Usually at this beginning, they will commute between their parents home and their new place where property is at both locations. These newbies typically have few possessions of high value, and this adds to the their outlook that insurance is unnecessary. However, even when possessions are very few, every person has the legal responsibility to handle the damage they accidentally cause to other people and/or other people’s property. When a child reaches adulthood, they have reached the point in their life where they need to get their own insurance.

Give your adult children the name of an insurance professional you trust to help them get the exact protection they need.

If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com

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March 19th, 2013 by VRP Insurance Agency