Should I tell ins. co. I have a roommate?

[lburgguy]

What is the name of your state? Virginia

I own my home and just got a tenant for my basement apt. and will soon have another person renting a room upstairs.

I am reluctant to tell my insurance company because I'm afraid my rates will increase.

What are the possible perils of not telling them? I am afraid if I don't and there's a devastating fire or something like that they will deny my claim. Any insight would be appreciated.

Thanks.

 

[moburkes]

What is the name of your state? Virginia

I own my home and just got a tenant for my basement apt. and will soon have another person renting a room upstairs.

I am reluctant to tell my insurance company because I'm afraid my rates will increase.

What are the possible perils of not telling them? I am afraid if I don't and there's a devastating fire or something like that they will deny my claim. Any insight would be appreciated.

Thanks.

I'll make it easy for you. As SJ would say:

Q: I am reluctant to tell my insurance company because I'm afraid my rates will increase.

A: I am afraid if I don't and there's a devastating fire or something like that they will deny my claim.

Now, you have to decide it a claim denial, and then, a cancellation, are worth it. That's my insight.

 

[efflandt]

What does your home policy say about who it covers, or not, or whether you have to list occupants or tenants?

The only related questions on my original homeowner ins. app. were:
Occupied: Owner, Tenant (checkboxes - does not indicate if just pick one, or all that apply, ask your agent)
Any full time residence employees: Yes/No
Any other residence owned, occupied or rented: Yes/No (not referring to this one)
Does applicant or or tenent have any animals or exotic pets: Yes/No
For rentals and condos it asks if manager is on premises, a security attendant, or building entrance locked
There is nothing requesting number of or names of occupants or tenants.

If someone in your household (depending how they define that) would ever drive a vehicle of yours, that might be an auto insurance issue, depending upon whether you have to notify them of other possible drivers at your address.

 

[moburkes]

Tenants could expose you to liability issues. The insurance company has no expectation to receive a claim from a "household member", especially since injuries to a household member should be covered by health insurance (for example). The other problem is personal property. The tenant should realize that his things are not covered by the homeowner's insurance policy. Also, the homeowner could potentially set himself up to be sued for a tenant's actions, and the HO policy doesn't cover that (defense costs).