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| April 2009, Volume 28 |
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Insuring Roommates And Domestic
Partners Most insurance policies are
designed to cover the following:
However, when two or more unrelated individuals live in the
same residence and/or share the use of the same vehicle(s), the coverage
situation becomes confused. It’s still common for either policy wording or
company underwriting rules to limit or bar convenient coverage for an unrelated
person. Why one or more unrelated persons are together is their business; the
relevant consideration is how are their insurance needs met? Homeowners Insurance If you share an apartment or rent a home and each of you
retains separate ownership of your property, each of you should carry your own
tenant's policy. If you own the home jointly, but maintain separate ownership
of your personal property, you might consider the following strategy: 1. Name
one individual as the "named insured" on the policy. The named
insured is covered for his interest in the dwelling and personal property (such
as clothes, appliances, furniture, etc.). Further, the named insured is also
protected against losses involving his legal liability to others including
payments for medical services. 2. Add
the other owners as additional insureds - residence premises. The other owners
then will have coverage for their interest in the dwelling, premises liability
and medical payments to others. 3.
Finally, each additional insured should buy their own tenant's policy to cover
their personal property. Auto Insurance If each person has his or her own vehicle, the insurance
question couldn't be simpler. Each vehicle should be insured by the individual
owner. However, if two unrelated people share ownership of a vehicle, the
policy covering the car should have a joint coverage endorsement added to it. A
joint coverage endorsement (which may have various names) should result in
giving the co-owners the same coverage as if they were related. (This
endorsement is not available in all states.) The same strategy may be used when
only one person owns the household's vehicle. The other person (who does not
have his/her own car) may be added via a joint coverage endorsement. However,
other options may exist such as (depending upon the insurer): the non-owner
resident may be added to the owner's policy as a part-time driver or the other
person might purchase a "non-owned" auto policy to get automobile
coverage. The insurance industry is
making halting steps to acknowledge a broader range of ownership arrangements,
including policy forms that allow policies to reflect domestic partnerships.
How can you be sure about whether your interests are properly covered?
Easy…speak to an insurance professional; discuss your situation in detail and
then determine the best way to structure your policies. COPYRIGHT: Insurance Publishing
Plus, Inc. 1996, 1999, 2002, 2008 All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language;
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