Roommates, "Living Together" and Alternative Lifestyles

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Homeowners and auto policies are designed for the single individual or the traditional family - husband, wife, children. Allowances are made in both policies for resident relatives. However when two or more unrelated individuals live in the same home, apartment, or condo and/or share the use of the same vehicle(s), coverage becomes less clear or even non-existent.

Roommates

• If you share an apartment or rent a home and each of you retains separate ownership of your "stuff," what most insurance companies and agents recommend is that each of you carry your own tenant's policy.
• If you own the home jointly, but maintain separate ownership of your "stuff," you will need to consider the following:
  1. First, name one individual as the "named insured" on the policy. This will cover the named insured for his/her interest in the dwelling and his/her "stuff" plus premises liability and medical payments to others..
  2. Then add the other owners as additional insureds - residence premises. The other owners then will have coverage for their interest in the dwelling, premises liability and medical payments to others.
  3. Each additional insured should obtain a tenant's policy to cover his/her stuff.
• If each roommate has his or her own vehicle, each vehicle should be insured by the individual owner.
• However, if two unrelated people share ownership in a vehicle, you will need to add the Joint Coverage Endorsement. The Joint Coverage Endorsement gives both of you the same coverage as if you were related. (This endorsement is not available in all states.) The same applies if one of you owns the one vehicle in the household and the other individual owns no vehicle or has no separate car insurance - you will need to add the Joint Coverage Endorsement to give that non-owner resident full automobile coverage.

Living Together

You have the same problem as roommates, but you probably have "stuff" you bought together. Or maybe you are engaged and have purchased a home before your actual wedding date. You will need to structure your auto and home insurance in the same manner as do roommates. However, joint ownership of "stuff" does pose a problem. Here we don't have the perfect solution. The best suggestion is to maintain separate records of who actually purchased what and claim each under your separate policies until the time when you are married. When you get married, the tenant's policy can be canceled. If you own a home together, you can eliminate your spouse's additional insured endorsement. Naming both of you as named insured on the homeowners policy is a good idea. Your vehicles may still be titled in separate names. You can eliminate any joint ownership endorsements you may have added, for spouses are afforded the same protection. It is also wise after marriage to put both cars on the same policy - when permitted by the state and company, because most states and companies give multi-car discounts for two or more cars insured under the same policy.

Alternative lifestyles

Same sex partners have the same problems as roommates. Affirmations and other "marriages" as can be found in many states do not always carry the full force of law and legal recognition as does the traditional marriage. If you and your partner are considered legal spouses in the state where you reside, then you may be able to avoid having to purchase the multiple policies as required for roommates and "living together." Ask an agent how you should structure your policies.

Life insurance

The owner of a life insurance policy can name as beneficiary anyone whom he/she can persuade the insurance company to add to the policy. However, if you name an irrevocable beneficiary, you cannot change the beneficiary without the beneficiary's written consent. Generally companies will not accept the designation of a beneficiary unless the beneficiary is a relative or has some financial relationship to the insured on the policy. Sharing property ownership is a legitimate reason. Insurance companies can also be persuaded - with logical argument - to add individuals as beneficiaries who are "Living together", engaged or affirmed. Arguments include intent to marry, co-mingling of resources and the need for joint income to maintain current lifestyle, or the length of the cohabitation.

Health insurance

Unless you are related, in most states you will need to maintain individual health insurance policies. Many group health plans are more liberal, but check with your plan administrator and don't assume your significant other is covered unless you see something in writing that says so. If either or both of you have children who need to be covered, you may need two separate family plans.

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