How Do I Insure A 2nd Home I Bought To House My Elderly Parents?

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3 responses to “How Do I Insure A 2nd Home I Bought To House My Elderly Parents?”

1. 

   April 15, 2014

   Frank Lombard CPCU ARM

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   I suggest a different approach to addressing this situation. The only way you could obtain homeowners coverage on a house you don’t live in is to be less than candid on the application. If a problem occurred, you may find yourself and your parents without any coverage.

   To be eligible for most homeowners’ policies, a dwelling must be owner- occupied. The policy only covers “the dwelling on the residence premises”. If the named insured (you) don’t reside there, the insurance company could deny your claim.
    
   Some insurers however will issue homeowner’s coverage to an insured(s) who has a life estate in a property. You could own the property; grant a life estate to your parents. They could obtain homeowners’ policy naming them as insured(s) and you; the owner of the property could be included as an “additional named insured” for your interest in the dwelling and the personal liability insurance. There is a standard endorsement available for that specific purpose. Your parents would be covered for their personal property, additional living expense and personal liability. You would be covered for damage to the dwelling and liability for injury or damage to others arising out of your ownership of the property.
    
   In my opinion, this would be the most practical, effective and economical way to address this kind of a situation. It is probably more common than you think.
    
2. 

   April 14, 2014

   Mark Bartlett CLCS

   Its really no different then insurance your first home other then the coverage’s are slightly different and how the risk is rated. Best to contact your existing agent to see if they have the ability to quote the second home as often times the liability from your primary will extend to your secondary home.
3. 

   April 14, 2014

   Robert Bland, CLU

   I would urge you to first call the agent who sold you the homeowners insurance on your first home.  That agency can best advise you on how to insure a second home from a wholistic basis knowing that your liability exposure has increased as well as you property damage exposure.