Personal property coverage for members outside the 'family'
Coverage Q&A: How does homeowners insurance cover the property of household members who are outside the insured's family.
Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts.
Editor’s Note: This week’s question helps unravel how homeowners insurance policies treat members of a household who are outside the “family.”
Question: Our insured has a homeowners insurance fire claim under the ML 20 policy form. The only issue we are having with the claim is in an area we feel should be covered under the personal property section of the policy, but the insurance company disagrees.
The insured lives in the house with a person who helps her with chores around the house, shopping, going to the doctor, cleaning, etc. This person does not receive a salary for these services but lives rent-free as her remuneration. Can this be considered a domestic employee, which would then allow the person’s contents to be covered by this claim?
— New York Subscriber
Analysis: The homeowners insurance policy was designed to provide coverage for the insured and family. The issue is that not only family members may be part of the household. Friends may share a home as well as unmarried couples, and older or handicapped people may have live-in caregivers to help out. The problems that arise here are: are these people roomers or boarders; are maids or caregivers paid employees or is their compensation room and board; and how does the policy provide coverage for their personal belongings if something happens to the house — if it provides coverage at all?
Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.
Related:
- To learn more about FC&S Expert Coverage Interpretation, visit our website.
- Sign up to receive our weekly newsletter, FC&S Coverage Insider, to stay up-to-date on insurance coverage issues.
- Discover our resources on commercial lines and personal lines on the NU Resource Center.
- Get 10% off your subscription to FC&S Expert Coverage Interpretation just for being a PC360 reader! Complete the free trial form or call 214-356-9145 to learn more or get started today.