Home owners insurance and household employees

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notmyhand
Posts: 275
Joined: Mon Jul 15, 2013 7:43 pm

Home owners insurance and household employees

Post by notmyhand » Sun Feb 18, 2018 8:52 pm

Recently had knee surgery and am thinking of paying a friend's teenager to come over and do a few odd jobs such as walking the dogs and cleaning up the yard for the next few months. Do I need to do anything with my homeowner's insurance? I'm afraid of an event like my helper injuring himself on my property and my insurance not covering him because I paid him.

boglerdude
Posts: 570
Joined: Fri Jul 10, 2015 1:28 am
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Re: Home owners insurance and household employees

Post by boglerdude » Mon Feb 19, 2018 6:03 am

Ask your agent via email (so its in writing).

Consider increasing "med payments" coverage, its cheap.

Get an umbrella policy.

Make sure there are no hazards on your property.

denovo
Posts: 4072
Joined: Sun Oct 13, 2013 1:04 pm

Re: Home owners insurance and household employees

Post by denovo » Mon Feb 19, 2018 6:44 am

notmyhand wrote:
Sun Feb 18, 2018 8:52 pm
Recently had knee surgery and am thinking of paying a friend's teenager to come over and do a few odd jobs such as walking the dogs and cleaning up the yard for the next few months. Do I need to do anything with my homeowner's insurance? I'm afraid of an event like my helper injuring himself on my property and my insurance not covering him because I paid him.
Take a look at your last policy. Some policies have a rider for "household employees" or others that work on your property that you can pay for or come automatically with that policy. You need to check to see what exceptions or exclusions apply to that rider. For example, my rider says that the injured employee can not have worked for me for more than 50 hours in the 90 days preceding injury for the policy to be in affect.

I would be covered in regards to a gardener or maid who comes by 10 hours a month , but not if I had live-in help that was with me 10 hours a week.
"Don't trust everything you read on the Internet"- Abraham Lincoln

scifilover
Posts: 223
Joined: Sun Apr 14, 2013 12:56 pm

Re: Home owners insurance and household employees

Post by scifilover » Mon Feb 19, 2018 8:12 am

There are other issues with this.....do you think the total amount you might pay will be more than $2000? If so, you must register as employer with the IRS and pay SS and Medicare Tax. Some states have more stringent limits before you must pay unemployment insurance tax or withhold for state income tax.

If you think you might go over the fed limit, it is often easier to use an agency to handle the payments. The person becomes the employee of the agency, you submit documentation and give them money and they do all the paperwork and payroll and write the person checks. This isn't cheap, but if you don't know how to do payroll, and don't want to register as an employer it is much easier.

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