In-law apartments provide independence while maintaining a close proximity. In doing so, they sometimes blur the lines between immediate and extended family -- especially from an insurance perspective. If you have a home in New Haven, Vermont, and your parents live in an in-law apartment attached to your house, your homeowners insurance policy might provide coverage for them and their belongings.
Check Whether Your Homeowners Insurance Provides Coverage for Your Parents if They Live in Your New Haven, VT Home
Your Homeowners Insurance May Cover Your Parents
Most homeowners policies include at least three major coverages:
Dwelling Coverage, which usually provides protection for the home itself
Personal Property Coverage, which usually provides protection for the policyholder’s personal belongings
Liability Coverage, which usually provides protection for covered accidents that the policyholder is held responsible for
(The exact amount and type of protection afforded by a policy depends on the policy’s terms and conditions)
Your homeowners insurance policy may extend any one, or all three, of these protections to parents who live in an in-law apartment that’s attached to your house. The protection for your home in New Haven may be extended to the structure of the in-law apartment because it’s attached to your primary residence.
The other two protections, personal possessions coverage and liability coverage, are often extended to the immediate family members of the policyholder. A spouse and children are almost always considered covered immediate family members if they live in the same house. Your policy may also consider any parents who live in the same building, even if they’re in a different section of it, as covered immediate family members.
Your Homeowners Policy Might Not Provide Coverage for Your Parents
While your policy may provide coverage for your parents, it also might not fully cover them. It’s possible that your policy only provides limited coverage or, even, no coverage at all.
For instance, your policy might treat your home’s in-law apartment as a separate structure that isn’t covered under the dwelling coverage provided for your property’s primary structure. If your in-law apartment is deemed to be another structure, whether it’s covered by your policy would depend on whether your policy provides coverage for secondary or other structures.
Additionally, your parents might not be considered immediate family members who live with you and, therefore, may not be extended the same personal property coverage and liability coverage that you have. Your policy especially may not extend coverage to them if they pay you rent, as paying rent generally creates a landlord-tenant relationship.
Review Your Situation with an Agent in New Haven, VT
Figuring out what, if any, coverages your homeowners insurance policy extends to any parents who live in an in-law apartment can be difficult. It requires carefully considering your particular situation and reviewing all of the fine print in your homeowners policy’s paperwork. For help figuring out whether your policy extends coverage to your parents, talk with an insurance agent in New Haven. They can look over your policy and ask any questions that would impact your policy’s coverage to help you determine whether your parents need their own insurance or are protected by yours.