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Adult Child in a Parent’s Home: Will Insurance Cover?

Adult children living with their parents: it’s a trend taking place all over the country with the State of NJ ranking the highest percentage.

If this living arrangement resonates in your residence, it’s wise to study your home and auto insurance policies while considering life protection. Does your coverage include your grown-up kids?

Homeowners Insurance

A standard Homeowner’s or Renters insurance policy should cover your property as well as that of your adult child living in your home. Pay attention though to the limits on your policy and take stock of your son or daughter’s belongings. If there are costly computers, I-phones, other types of expensive electronics, musical instruments and art or jewelry, adding more coverage may be necessary.

Take note as well that if you make renovations within your home to accommodate your adult child, the improvement may raise the value on your home and the need to update your coverage.

Auto Insurance

Many parents get a break on auto insurance if a college-attending child lives a minimum distance of one-hundred miles away. Once a child returns, the insurance company needs to be informed to adjust the bill. If an adult child owns a car, he or she must have an individual auto policy.

Life Insurance

Life insurance is usually thought of as a way for a parent to help loved ones by transferring tax-exempt finances to family members after death. That’s certainly a good thing, but for adult children who contribute to the family’s income, there’s another alternative as well. By purchasing a life insurance policy for your child, you can have the peace of mind associated with monetary assurance in relation to lost wages if your child passes away.  

For a free consultation about your family’s individual circumstances and how it relates to insurance protection, contact us at Prime Insurance.

PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!


Summary: With trends of post college kids and older returning home to mom and dad’s residence, we’re focusing on insurance matters and how they pertain to the situation.