Nearly half of all American college graduates return to live at home after graduation. With the rising costs of living expenses and limited job opportunities, it is becoming more common for adult children to live at home. When you move back home, you also bring back all your clothes, furniture, and other belongings with you. Belongings that you should consider protecting against damage and the cost of replacement in the event something should happen.
If your parents are homeowners, it is likely that they have a homeowner’s insurance policy; or if they rent, they likely have their own renter’s insurance policy. To protect your belongings, you will need to see if you can piggyback on your parent’s policy or if you will be required to purchase your own policy.
Making this decision can depend on the answer to the following questions, and of course, what your parent’s insurance carrier will allow:
Typically, home insurance and renter’s insurance will cover the property of all permanent dwellers in the home—the coverage limits may need to be adjusted to include enough coverage for your belongings. If you will be living at home for an extended period, you can consider yourself to be a permanent dweller. Your parents may need to increase their coverage level to include your belongings if you are staying short term and cannot qualify for your own renter’s insurance coverage.
Moving back home doesn’t have to feel like a step back—especially when you choose to make adult decisions about insurance coverage.