Getting Renters Insurance While Living With Family

For a lot of recent grads, moving back home is the norm rather than the exception. With a competitive job market and skyrocketing rental costs, living with mom and dad until you can start making some headway out in the real world is really the only option out there. That’s not a bad thing. The Atlantic reports that 45 percent of college students move back home after graduation. Moving back home after college doesn’t mean you’ve failed, it means you’re still working towards your goal. Plus, moving back home doesn’t mean you’ll be living under mom and dad’s thumb. Because you’re all adults, it’s now more of a roommate-type situation. If you decide that renting a space from your folks is the best way to go for you, consider getting renters insurance and find your renters insurance quotes fast and easy at CoverHound.‍

The New Normal‍

According to the New York Post, half of all American college graduates believe they will need their parents financial help for as many as two years after graduation. And with student debt hitting the $1.2 trillion mark, it’s no wonder that graduates are returning home, they can’t afford to cover their living expenses without missing a loan payment.

The federal wage baseline sits at $7.25, and with the median rent coming to $934 a month, it’s no wonder students can’t forge ahead on their own after graduation, especially if they live in urban areas. Young 20-somethings are returning to their hometowns en masse, and need a cheap place to stay until they land their starting job.

When you move back home, all of the furniture and other odds and ends you’ve collected over the years have come back with you. Now it’s not just your parents who have to think about how they’re going to insure everything, it’s you too.

‍Renting A Room‍

As homeowners, your parents probably have a homeowners insurance policy. A homeowners insurance policy is a type of property insurance that protects the homeowner’s structural and personal property against damages, including natural disasters, vandalism and theft. Because you have moved back home and brought with all of your own personal property, you will need to get that insured too. The question is, can you get insured under your parents’ policy, or do you need to get renters insurance?

Before either you or your parents spring for coverage, ask yourself the following questions:

• 1. How long will I (or my child) be living here?
• 2. Will homeowners insurance cover any financial losses if I (or my child) lives here for six months or less?
• 3. Do I have to pay rent to get a renters insurance policy?
• 4. Will it be more expensive to add my child to our homeowners policy?
• 5. Does homeowners insurance even cover a renter’s personal items?
  

Answers will vary based by state insurance regulations and your insurance company, but typically a homeowners insurance policy covers the property of the permanent dwellers of the home. Because you would be a permanent dweller, your items would be covered under your parents’ policy. All your parents would need to do is update their policy. In some cases, this means that their monthly premium will rise. In this instance, you can offer to purchase renters insurance, which will cost nothing to your parents and will help you establish an insurance history, which insurance companies like to see.

Think of moving back home as just another stepping stone in reaching your personal and professional aspirations. At CoverHound we understand that times are tough. That’s why we offer competitive renters insurance quotes, so that we can get you the best financial deal. Click or call today for your free renters insurance quotes.