Adult children and your responsibility if they are negligent
If you have an adult child for whom you still pay some expenses, or they are studying in college (living either away from you or at home), you can still be held responsible any damage they cause due to their own negligence.
Even if your child has their own car insurance in their name, if he or she seriously injures someone and is sued, and the police limits for their car insurance are not sufficient to cover the judgment, you can be held liable for damages not covered by their policy. depending on the circumstances.
That said, apart from car accidents, negligent and / or intentional acts that damage someone else's property or damage a third party may be covered under your homeowner's policy and an umbrella policy.
There may be situations when the parents of a 20-year-old careless driver who is either still living at home or away from college can take steps to separate their responsibilities from their own, such as: [1
When you remove a young adult driver from the family policy, you reduce the probability of a claim on property damage, first-party and third-party damage and other liabilities that may be caused by an accident.
It would reduce the parents' car insurance premiums and push the liability for the child's insurance. However, if the child is sued for extreme negligence and the allotment exceeds the insurance's maximum liability, the surcharge may lie on the parents' shoulders if the child does not have the personal resources to pay.
Parents' car insurance would not cover it, and since it is auto-related, a homeowner's policy would not cover it either. The costs would come out of pocket.
Declaration of coverage
The coverage rate for minors and adult children according to their parents' homeowners, with regard to coverage of personal property and coverage of personal responsibility, rests on the policy. definition of "insured" in the typical insurance.
The definition in turn includes relatives residing in the name of the insured's household. Children, brothers and sisters, parents and grandparents are examples.
This does not mean that your 40-year-old daughter who is over for dinner is covered, as a visitor is not resident. The insurance will also cover persons under the age of 21 in the care of the insured (eg a foster child).
The next time your homeowner or tenant policy is renewed, call us and let us know if you have any adult children and what their status is in terms of accommodation arrangements, and any financial support you can provide them. It helps to determine who is and who is not covered by your family and your household.