Some insights on home insurance from Saga for you;
Between the high cost of living, saving to buy a first home, returning from university, or navigating life changes like redundancy, the UK is seeing the rise of the “boomerang generation” – adult children returning to live with parents.
Anna Thunstrom, Saga Home Insurance’s Product Manager, reveals to homeowners that while ‘boomerang’ adult children typically don’t pose a problem, there are certain changes and conditions that must be declared to an insurer to avoid invalidating a policy.
Almost one in two adult children move back home
Saga’s home insurance survey of 500 British adult children reveals 49% have moved back in with a parent or guardian after age 21.
Most returned after university (47%), a life change such as a breakup or health issue (30%), to save money generally (25%), to save money to buy their own home (17%) and because of redundancy (16%).
The potential insurance blind spots
Anna Thunstrom, Product Manager at Saga Home Insurance, says:
“Many factors are taken into consideration by insurers when assessing risks and calculating home insurance premiums, and these include who lives at the property, valuable items they own, and what activities take place there.
“If this changes and isn’t accurate anymore, it could leave room for a claim to be denied, or a policy invalidated.”
What to let your insurer know – or potentially risk your policy
While returning adult children typically don’t need to be declared, it’s a good idea to let your insurer know to check your contents limit is still sufficient. However, Anna says you must inform your insurer if any of the following apply:
1. They bring a partner
“If your adult child moves back and their partner comes too, this must be declared. Insurers typically expect family members to come and go, but non-family members are treated as a lodger. This rule applies regardless of whether the partner pays rent or not.”
2. There’s business activity in the home
“Operating a business, meeting clients, and storing inventory can affect your policy, especially if it impacts liability or contents cover. It’s important to declare if the returning child has their own business or side hustle that operates from the home.”
3. The returning resident has specific risks
“If they have unpaid debt, have been declared bankrupt, or have unspent criminal convictions, these could influence your policy terms.
“Typical credit card and overdraft debt is usually fine, it’s if there’s a Debt Relief Order, Individual Voluntary Arrangement, or County Court Judgment against them, for example, which could pose an issue.”
When asked about the insurance implications, 55% surveyed were unaware that some living arrangements may need to be declared to their insurer.
Anna adds:
“Even if your child only moves back temporarily, if any of the above apply, a quick call or email to your insurer could protect you from any surprises.”
Two things that don’t usually require a policy update:
- A student returning home during holidays
- Using a spare room as a standard home office or gym (as long as contents remain within limits)
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