If you are in the “living together but is not married” category, make sure you look closely at the text in your own home and car insurance policies that specifies which individuals are covered-in insurance terms, the “insureds.”
Most standard house insurance policies restrict coverage to some “named insured”-the individual person(s) named around the policy with his fantastic or her resident spouse. The policy then extends coverage to “resident relatives,” a phrase speaking about individuals regarding the named insured by blood, marriage or adoption (or someone under 21 as part of your care, such as a foster child) whorrrre residents with the named insured’s household.
This means some insurance company doesn’t have any obligation to hide a non-insured’s liability in order to defend that individual inside of a lawsuit alleging liability.
Example scenario: A girlfriend and her teenage son move your stuff in with all the woman’s boyfriend. The son seriously injures another child from a tackle football game along at the park downtown. That child’s parents file a suit about the mother/girlfriend. Unless she’s got her own renters insurance coverage or has been added for a named insured for the home owners insurance policy (which most insurance companies won’t do if she isn’t a cousin), this lady has no coverage.
The matter doesn’t stop with liability. It’s likely that the girlfriend and her son will move a selection of their personal property alongside them. Clothes, electronics, school supplies and other things is assigned to them might not be taught in homeowner’s insurance cover. Most policies exclude coverage for private property that may be belonging to roomers, boarders or tenants. This personal property exclusion is yet another reasons why a renters auto insurance policy is essential for non-insured roommates.
The auto policy has the benefit of a “named insured” which include anyone listed in your local policy and his awesome or her spouse. The insured by using an auto policy varies according to the coverage.
Example scenario: Say a mature boyfriend and girlfriend each have an automobile and also their very own car insurance policy policies. One has high limits of liability on their policy, maybe $100,000, and also the other has lower limits, like $25,000.
The liability portion of policy covers the “named insured” and “family members” for liability arising outside the use of any auto. In addition, it considers almost every other person an “insured” although that individual is occupying a car or truck (with permission) that may be insured below your policy. If the girlfriend is driving the boyfriend’s car and goes into a mishap causing injuries, his auto insurer would repay towards the policy limits-in it, $25,000. Unfortunately this may not be enough money to pay the full liability in case the injuries are severe, and also the liability policy with $100,000 limit aren’t available to be a fallback, even though it covers the motive force to your usage of any auto. That’s given that the driver’s insurer can believe that this car can be acquired to your driver’s regular use ever since the car owner and driver live together knowning that, under that circumstance, coverage is excluded because of the policy language.
The great thing is these scenarios have solutions. E-mail us to debate your plan of action; we’re here that can help.