COVERAGE GAP: UNRELATED PERSONS IN HOUSEHOLD
From the current homeowners policy: In this policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse of a resident of the same household. "We," "us" and "our" refer to the Company providing the insurance.
The ISO Personal Auto policy has the same language, with one interesting additional requirement: You better not only be married, but you better still be living together.
Who else may be living in an insured's household today that the standard form's language has left on the coverage curb? Here are a few examples:
- A resident non-spouse "significant other"
- Resident children of the "significant other"
- Non-resident spouses and relatives
- Non-relative residents
- Relatives of a former spouse who no longer lives with you
- A former spouse who is still a resident
Two Key Homeowner Possibilities:
- "Other Members of your Household" endorsement is available with some carriers. The endorsement for a small charge will extend coverage to a member of your household who is not an "insured", guest, residence employee, tenant, roomer or boarder. Such coverage is afforded for property and liability.
- The insurance carrier at their discretion may add this person as a Named Insured, but carriers do not like to do this. Contact your agent for discussion.