Question from Clair L. from Carmel:
One of my kids graduated college in the spring and has yet to find a job. Are there insurance issues that I need to be concerned about? This situation seems to be pretty common these days.
Response from Jamie Ianigro:
The down economy has hit everyone, but it’s really punished the folks graduating from college the last couple of years. You trigger some insurance issues anytime someone moves into your home. You could also be heading towards some health insurance issues depending on the age of your children. Let’s start with the property and liability issues though.
Personal liability is the big issue that arises with grown kids. Everyone has a legal responsibility to handle the damage they cause to other people and their property. It can be anything from injuring someone accidently in a recreational sport to misjudging the wind and felling a tree into a neighbor’s house. The liability falls right back on your homeowner’s policy if you or your child does something like that. The problem that can arise is where your grown kid actually lives. Maybe all of their stuff is under your roof, but are they sleeping there every night? Are they paying you rent?
You might consider getting a renter’s policy in their name. It has the benefit of property coverage, but the main benefit is that there will be no fight over liability coverage if a conflict arises. This is an important issue, and verifying with your independent agent that you and your grown kids are protected is a quick and easy thing to do.
Health insurance is the other major issue that affects grown children that not eligible for their own coverage. The Affordable Care Act extended the age limit that children can stay on a parent’s health plan to age 26.
Many options at many price points are still available once someone passes the age restriction. Independent insurance agents are usually able to help you secure an individual health policy and help weigh your options. Going without coverage is an absolute last resort option. Having an emergency surgery or medical situation can be a crippling financial blow without some kind of health insurance. It is extremely risky and will make it very difficult to get quality coverage in the future.