Need to add houseguests to homeowners or umbrella insurance?

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need403bhelp
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Need to add houseguests to homeowners or umbrella insurance?

Post by need403bhelp » Sun Nov 10, 2019 4:09 pm

Good afternoon.

Our in-laws are coming to stay with us for almost 2 months from a foreign country.

Do we need to add them to our homeowners or Geico umbrella insurance? I haven't called our homeowners company nor Geico, wanted to check the wisdom on this forum first.

Thanks!
Last edited by need403bhelp on Sun Nov 10, 2019 4:24 pm, edited 2 times in total.

Daryl
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Re: Need to add houseguests to umbrella insurance?

Post by Daryl » Sun Nov 10, 2019 4:14 pm

Will they be driving any of your vehicles? If so, I'd recommend letting your insurance agent know. The agent and their company probably won't care, but I could be wrong and I would hate to see a claim denied due to poor advice from a random stranger on the internet!

Gill
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Re: Need to add houseguests to umbrella insurance?

Post by Gill » Sun Nov 10, 2019 4:15 pm

Why would they need liability coverage? Seems it’s no concern of yours.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Topic Author
need403bhelp
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Re: Need to add houseguests to umbrella insurance?

Post by need403bhelp » Sun Nov 10, 2019 4:18 pm

Daryl wrote:
Sun Nov 10, 2019 4:14 pm
Will they be driving any of your vehicles? If so, I'd recommend letting your insurance agent know. The agent and their company probably won't care, but I could be wrong and I would hate to see a claim denied due to poor advice from a random stranger on the internet!
No, no driving.

I guess I’m more concerned let’s say they are cooking and burn our place down, then the neighbors house also burns down. Will we be covered by our homeowners policy and umbrella policy? In other words, how long can one stay with us before needing to be added to insurance policies? When is a house guest no longer a guest but residing there for insurance policies?

Topic Author
need403bhelp
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Re: Need to add houseguests to umbrella insurance?

Post by need403bhelp » Sun Nov 10, 2019 4:25 pm

Gill wrote:
Sun Nov 10, 2019 4:15 pm
Why would they need liability coverage? Seems it’s no concern of yours.
Gill
Thanks. I guess my thought was about a situation like cooking, burning down the house, somehow also burning down neighbor's house (they are connected), and then our insurance not paying. Maybe that is homeowners + umbrella, but not sure whether they would need to be added if they are staying for almost 2 months...

Daryl
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Re: Need to add houseguests to umbrella or homeowners insurance?

Post by Daryl » Sun Nov 10, 2019 4:27 pm

need403bhelp wrote:
Sun Nov 10, 2019 4:18 pm
I guess I’m more concerned let’s say they are cooking and burn our place down, then the neighbors house also burns down. Will we be covered by our homeowners policy and umbrella policy? In other words, how long can one stay with us before needing to be added to insurance policies? When is a house guest no longer a guest but residing there for insurance policies?
My renter's insurance policy would provide coverage in that example. My carrier defines "Insured" to include "residents of my household" and "relatives". I'm assuming my umbrella policy includes similar language.

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RickBoglehead
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Re: Need to add houseguests to umbrella insurance?

Post by RickBoglehead » Sun Nov 10, 2019 4:30 pm

need403bhelp wrote:
Sun Nov 10, 2019 4:18 pm
Daryl wrote:
Sun Nov 10, 2019 4:14 pm
Will they be driving any of your vehicles? If so, I'd recommend letting your insurance agent know. The agent and their company probably won't care, but I could be wrong and I would hate to see a claim denied due to poor advice from a random stranger on the internet!
No, no driving.

I guess I’m more concerned let’s say they are cooking and burn our place down, then the neighbors house also burns down. Will we be covered by our homeowners policy and umbrella policy? In other words, how long can one stay with us before needing to be added to insurance policies? When is a house guest no longer a guest but residing there for insurance policies?
If they burn down your house, and your neighbor's house, YOU are on the hook as the owner of the property, since they are your guests.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

Trader Joe
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by Trader Joe » Sun Nov 10, 2019 6:30 pm

need403bhelp wrote:
Sun Nov 10, 2019 4:09 pm
Good afternoon.

Our in-laws are coming to stay with us for almost 2 months from a foreign country.

Do we need to add them to our homeowners or Geico umbrella insurance? I haven't called our homeowners company nor Geico, wanted to check the wisdom on this forum first.

Thanks!
No you do not. I have been in and am in the same situation as you (with Geico).

No need. Do not worry.

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need403bhelp
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Re: Need to add houseguests to umbrella insurance?

Post by need403bhelp » Mon Nov 11, 2019 6:24 pm

RickBoglehead wrote:
Sun Nov 10, 2019 4:30 pm
need403bhelp wrote:
Sun Nov 10, 2019 4:18 pm
Daryl wrote:
Sun Nov 10, 2019 4:14 pm
Will they be driving any of your vehicles? If so, I'd recommend letting your insurance agent know. The agent and their company probably won't care, but I could be wrong and I would hate to see a claim denied due to poor advice from a random stranger on the internet!
No, no driving.

I guess I’m more concerned let’s say they are cooking and burn our place down, then the neighbors house also burns down. Will we be covered by our homeowners policy and umbrella policy? In other words, how long can one stay with us before needing to be added to insurance policies? When is a house guest no longer a guest but residing there for insurance policies?
If they burn down your house, and your neighbor's house, YOU are on the hook as the owner of the property, since they are your guests.
Got it. Just wanted to make sure the insurance doesn't come back and say "we don't pay as your relatives started the fire, and since they were staying longer than XX days you should have added them to the policy."

Topic Author
need403bhelp
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by need403bhelp » Mon Nov 11, 2019 6:25 pm

Trader Joe wrote:
Sun Nov 10, 2019 6:30 pm
need403bhelp wrote:
Sun Nov 10, 2019 4:09 pm
Good afternoon.

Our in-laws are coming to stay with us for almost 2 months from a foreign country.

Do we need to add them to our homeowners or Geico umbrella insurance? I haven't called our homeowners company nor Geico, wanted to check the wisdom on this forum first.

Thanks!
No you do not. I have been in and am in the same situation as you (with Geico).

No need. Do not worry.
I see. Thank you so much for sharing your experience.

Lee_WSP
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Re: Need to add houseguests to umbrella insurance?

Post by Lee_WSP » Mon Nov 11, 2019 6:34 pm

need403bhelp wrote:
Mon Nov 11, 2019 6:24 pm
RickBoglehead wrote:
Sun Nov 10, 2019 4:30 pm
need403bhelp wrote:
Sun Nov 10, 2019 4:18 pm
Daryl wrote:
Sun Nov 10, 2019 4:14 pm
Will they be driving any of your vehicles? If so, I'd recommend letting your insurance agent know. The agent and their company probably won't care, but I could be wrong and I would hate to see a claim denied due to poor advice from a random stranger on the internet!
No, no driving.

I guess I’m more concerned let’s say they are cooking and burn our place down, then the neighbors house also burns down. Will we be covered by our homeowners policy and umbrella policy? In other words, how long can one stay with us before needing to be added to insurance policies? When is a house guest no longer a guest but residing there for insurance policies?
If they burn down your house, and your neighbor's house, YOU are on the hook as the owner of the property, since they are your guests.
Got it. Just wanted to make sure the insurance doesn't come back and say "we don't pay as your relatives started the fire, and since they were staying longer than XX days you should have added them to the policy."
The insurance is tied to the property as opposed to people. So, as long as it's not an excluded reason (like arson or flooding (the nature kind) and terrorism is usually excluded these days), the liability insurance will cover the incident.

I'd be more worried about auto liability or harm that happens to them. Homeowner's only provides a small payout for guests. If they are injured beyond that payout amount, they'll have to file a claim against you & the policy for the rest.

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Raymond
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by Raymond » Mon Nov 11, 2019 7:01 pm

How are your in-laws covered for health insurance?
"Ritter, Tod und Teufel"

Vernn
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by Vernn » Mon Nov 11, 2019 7:21 pm

We did have an incident 2 years ago in the family. A nephew needed to stay for a few months with his girlfriend and their child. The girlfriend started a small kitchen fire that damaged the apartment. The insurance DID NOT pay claiming that the girl friend was not part of the family just the nephew and the baby. She was the mother of the child. :(

123
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by 123 » Mon Nov 11, 2019 7:26 pm

I would not add house guests to any insurance policies for all the reasons that have been stated. But there is another reason not to add them and that is it can be very difficult to remove them from coverage, at least with some companies. If you add them to the policies you may need their consent to be able to remove them from the policies. If they are not removed from the policy there is a likelihood that any payments from the insurance company in connection with the policy, either a claim or premium adjustment/refund will include them as a payee making it very difficult to negotiate such an item after they are long gone.
The closest helping hand is at the end of your own arm.

Topic Author
need403bhelp
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by need403bhelp » Tue Nov 12, 2019 12:41 pm

Raymond wrote:
Mon Nov 11, 2019 7:01 pm
How are your in-laws covered for health insurance?
$2m Atlas policy.

See separate thread:
viewtopic.php?f=11&t=292020

Topic Author
need403bhelp
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by need403bhelp » Tue Nov 12, 2019 12:41 pm

123 wrote:
Mon Nov 11, 2019 7:26 pm
I would not add house guests to any insurance policies for all the reasons that have been stated. But there is another reason not to add them and that is it can be very difficult to remove them from coverage, at least with some companies. If you add them to the policies you may need their consent to be able to remove them from the policies. If they are not removed from the policy there is a likelihood that any payments from the insurance company in connection with the policy, either a claim or premium adjustment/refund will include them as a payee making it very difficult to negotiate such an item after they are long gone.
I see. Thank you so much for the interesting information about difficulty in removing someone from a policy once they are on it.

Topic Author
need403bhelp
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by need403bhelp » Tue Nov 12, 2019 12:42 pm

Vernn wrote:
Mon Nov 11, 2019 7:21 pm
We did have an incident 2 years ago in the family. A nephew needed to stay for a few months with his girlfriend and their child. The girlfriend started a small kitchen fire that damaged the apartment. The insurance DID NOT pay claiming that the girl friend was not part of the family just the nephew and the baby. She was the mother of the child. :(
I see. Hopefully, since we are all related by blood or marriage, we should be ok. Thank you for sharing your family's experience.

Lee_WSP
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Re: Need to add houseguests to homeowners or umbrella insurance?

Post by Lee_WSP » Tue Nov 12, 2019 3:03 pm

Vernn wrote:
Mon Nov 11, 2019 7:21 pm
We did have an incident 2 years ago in the family. A nephew needed to stay for a few months with his girlfriend and their child. The girlfriend started a small kitchen fire that damaged the apartment. The insurance DID NOT pay claiming that the girl friend was not part of the family just the nephew and the baby. She was the mother of the child. :(
Was it renters insurance? I can’t see why homeowners would deny based on that fact pattern.

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