Changes in your household?: Tips for updating your insurance

The American household is changing. The typical single-family home has evolved in the 21st century.

Today, it's not uncommon for older parents to move in with their grown children, and with the combined rise in housing costs and debt from college loans, more college graduates are moving home with their parents. In fact, 47 percent of adults in their 40s and 50s either have a parent aged 65 or older living with them and are raising a child or financially supporting an adult child, according to the Pew Research Center.

Along with larger family meals and more loads of laundry, there are important insurance considerations that today's households need to consider. Making sure you are covered will go a long way to ensure the safety and financial well-being of your loved ones.

When your parents move in

You probably remember having a few "tough talks" with your parents when you were growing up. If your parent or an elderly relative is moving in with you, it's time to have another one of these talks.

One of the biggest points to discuss is finances, which includes insurance. You want to be sure your parents are up to date with their auto and life insurance premiums. And if your relative is bringing valuable possessions into your home, you may need to update your homeowners policy.

Also important is discussing potential long-term health care needs and discussing end-of-life wishes.

These conversations can be hard, and it's important to make your loved ones feel cared about, not cared for.

When adult children move home

It's not often someone in their mid-20s is excited about moving back in with their parents. But almost one-third of adults between the ages of 18 and 34 are living with their parents.

This transition can be expensive. Experts say hosting an adult child can cost between $8,000 and $18,000 per year. Therefore, from the beginning, you should set clear expectations. How long do they plan on staying? What is their work schedule? Will they help pay bills and insurance?

As long as your child lives in the same household as you, there is no age limit to how long they can be listed on your auto insurance. However, 26 is now the maximum age that your child can be covered on your health insurance plan.

Another insurance consideration is whether to include any of their expensive electronics or other personal belongings on your homeowners insurance policy. If so, will they help pay if the cost of the policy goes up?

To help avoid misunderstandings, the National Association of Insurance Commissioners created a Welcome Home contract for hosting adult children.

To download the contract and find other helpful resources, including tips and information to help you make the right insurance decisions, visit www.InsureUonline.org.