41461615 - family with adult children relaxing on sofa at home togetherDo you have more people living in your home these days? Over the last several years, many people are now living with their adult children and/or grandchildren. So-called multi-generational households are proliferating. More than 57 million Americans now live in a multi-generational home, according to the Pew Research Center.

In other households, homeowners have added roommates or Airbnb guests. Others have begun renting out vacation homes while they aren’t using them. If you’re thinking about doing any of those things, it’s time for an insurance checkup. Here are two ways your insurance coverage may be affected by additional people living in or using your home:

Homeowner’s insurance. You’ll want to let your insurance company know if you are renting out your home — or a portion of your home – to someone else. Depending on the circumstances, you may need a rider to your existing homeowners insurance policy or an additional policy covering a business operation in your home. Standard homeowner’s policies do not cover losses due to rental activities. By having the right type of insurance, you’re adequately covered in the event your renter is injured on your property or for any other type of claim. If you’re having adult children move back in your home, you’ll want to make sure their belongings are covered in the event of a loss. Ask your insurance company about that. Paying tenants in rental properties generally must purchase their own renters insurance policies to cover their own belongings.

Auto insurance. If you lend your car to someone else and they get into an accident, your insurance will cover it. However, as the policyholder, that accident will go on your insurance record, not the driver’s. Be cautious about who you lend your vehicle to and make sure your insurance company knows about any regular drivers of your vehicles. If your adult children have moved back in and are driving your vehicles regularly, you’ll want to let your insurance company know.

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