Families come in all shapes and sizes, and that's why it's important to choose the right home insurance policy for you and your loved ones.
For example, not all living situations require a full homeowners insurance policy while others may require a bit extra coverage.
In order to find you the best policy that fits your needs, here's what insurance companies need to know about your household.
How does the number of families in my home affect my insurance?
A typical homeowners insurance policy will cover the dwelling of a home, its contents, and certain liability situations.
This coverage applies to the homeowner and his or her family members living in the home. However, it may not cover any non-relative who also living in the home.
In this case, a renters insurance policy for non-relatives may be a suitable option to protect their belongings.
What if I rent out my home to several non-related people?
Landlords who rent out their homes can choose to protect their property by taking out a dwelling policy.
This policy typically only covers the physical structure of your home if it’s damaged by a covered hazard. It would also cover the contents that belong to you and liability situations. Your tenants should then seek out renters insurance to protect their belongings. If they are not related, they may have to seek individual policies.
What if I don’t live in my home but other family members do?
If you own a home but do not live in it, you should still seek out a dwelling policy, and not a homeowners policy.
This applies even if the residents of the home are family members and not tenants. Most homeowners insurance policies cover the policyholder at his or her residence.
Other properties under your name should be covered by a dwelling fire insurance policy, which would insure the structure of the home, any contents that belong to you, and help pay in liability situations.
The family members should seek out a renters insurance policy, even if they are not paying rent.