Transcript: my-financial-minute-insurance-empty-nest

Your child comes home to visit and needs to run a quick errand with your car. Are they covered on your insurance?

Ah. The day has come and our children have moved out of the house and are off to their new adventures. There’s time to sit back and relax now… or is there?

As with most life changes, new situations create new financial opportunities. So maybe this is a good time to re-evaluate our insurance needs.

For example, maybe we’re going to finally build that addition to the house that we’ve always wanted.

Or, maybe it’s time to move into something a little smaller and easier to maintain. In either case, our homeowners policy would need review.

If we’re downsizing from a minivan to a more efficient sedan, we’ll also need to update our auto policy, too.

And though it might seem as if we don’t need life insurance now that the kids are out of the house, there are still some great reasons to keep it. For example, in the unlikely event that something unfortunate happens, life insurance can supplement social security and retirement benefits for our spouse or partner.

Oooh, another policy we should consider is umbrella liability insurance. An umbrella policy provides coverage over and above the standard auto and home insurance. This is an important consideration when we think about protecting our nest egg. It covers attorney’s fees, damages, and settlements and judgments. So for those of us who’ve managed to put some assets together, this kind of insurance can be an extra layer of protection for the stuff we’ve acquired over the years.

Now that we have a bit more time on our hands, we should check on our Homeowners, Auto, Life and Umbrella Liability insurance coverage.

So is a child covered on your insurance if they borrow the car when they’re home to visit? The answer is Yes—as long as they had permission from you to borrow it.

I’m Karen Kahn for My Financial Minute — check back often to continue the conversation.

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