Over the past few years, it has become increasingly common for unmarried couples to live with one another. In fact, according to the Pew Research Center, the share of adults in the United States who live with an unmarried partner rose from 3 percent in 1995 to 7 percent in 2019. But what does cohabitation mean when it comes to insurance? For example, does the homeowners insurance policy purchased by one person in the relationship cover the belongings of the non-homeowner who lives in the same household? From homeowners insurance to auto policies, here are some important insurance considerations that unwed couples should be thinking about.
On the surface level, homeowners insurance is pretty simple: whoever has been named as an insured under the policy is eligible for coverage. These named people can include anyone who owns the home, as well as any family members who live in the home, including spouses. Homeowners insurance usually covers damage to a home, theft or loss of belongings and provides liability protection.
The situation gets a little trickier when a person who lives in the home is not a family member, spouse or owner. In this case, your insurance company may not sign off on adding them as a named person on your policy. That means unwed couples who are moving in with one another should check with their insurer to discover if an exception can be made.
If talking to your insurance company doesn’t work, there is another option. An unmarried person who lives in their partner’s home can apply for renters insurance. A person with this type of insurance would be protected if someone tried to hold them liable for an injury that happened at the home, or if their belongings were stolen or destroyed.
Unlike homeowners insurance, the auto insurance rules for unwed couples are much less strict. If you live with your partner, but you are not married, you may be able to add them to your car insurance as a driver depending on your insurer. You may also be able to share a joint car insurance policy with your significant other, which can be cheaper than buying two policies.
Keep in mind, however, that when you add someone to your car insurance policy, or if you share one, their driving record and claims history will come into play. If your partner has multiple infractions, it could increase what you pay for insurance.
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If you’re buying homeowners, renters or auto insurance for the very first time, or you’re looking to add someone to your existing policy, our experienced team of insurance agents can help. Reach out to us online to get started today.