What to do about insurance if my husband and I purchased my parent’s home and are now allowing my mom to live there rent free while we continue to live in a rental?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do about insurance if my husband and I purchased my parent’s home and are now allowing my mom to live there rent free while we continue to live in a rental?

Our insurance company insists that we should take out a renters homeowners policy on the house if we want to keep our renter’s insurance. Is this right? For tax purposes, we know we will be filing the home as “personal use” property. Also, would the problem be eliminated if we added my mom’s name to the title?

Asked on October 2, 2012 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I would not add your mother's name to the title of the home that you and your husband bought. As to the insurance for the home, I would have the standard homeowner's policy in effect advising your insurance agent that your mother is not renting the unit, she is allowed to live there gratis and that your policy needs to be updated with your carrier to reflect such.

There is no need for a renter's insurance policy on the property unless your mother wishes to place one in her name.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption