Is My Home Insurance Still Covered If a Family Member Lives There?

By Brad Davis, CIC (January 5, 2026)
Davis Insurance Associates – Myrtle Beach, South Carolina

Homeowners ask us this question in different ways:

Is my homeowners insurance still valid if I let my son live there?
What happens to my home insurance if my parents move into my house?
Am I covered if a family member lives in my home but I don’t?
Do I need different insurance if I let a relative live there rent free?

These are not fringe questions. They are very common scenarios for homeowners in Myrtle Beach and throughout the Carolinas. Unfortunately, they are often not asked until after something goes wrong.

The reality is this. Letting a family member live in your home can absolutely affect your home insurance, and whether you are properly covered depends on your insurance company, your policy language, and how the home is actually being used.

At Davis Insurance Associates, we regularly help homeowners navigate these gray areas. This is exactly why it is so important not only to read your policy, but to speak with your insurance agent before making changes to who lives in your home.

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Why Occupancy Matters in Home Insurance

Home insurance is priced and underwritten based on occupancy and use, not just ownership.

Insurance companies want to know:

• Who lives in the home

• Whether the named insured lives there

• Whether the home is owner occupied or non owner occupied

• Whether anyone is paying rent (sometimes a factor)

• Whether the situation is temporary or permanent

Even if the person living there is a child, parent, or other relative, a change in occupancy can trigger different underwriting rules and coverage requirements.

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How Insurance Companies View Family Members Living in a Home

This is a critical point that many homeowners do not realize.

Insurance companies are not uniform in how they handle family members living in a home.

Why Insurance Companies Do Not Treat This the Same Way

Some carriers:

• Allow certain family members to live in the home with no change, as long as the named insured still resides there

• Allow it, but require an endorsement or documentation in the file

• Require the family member to be listed as an additional insured or resident relative

• Require the policy to be rewritten entirely if the named insured no longer lives there

Two homeowners can have the same situation and completely different coverage outcomes depending on the carrier. While many carriers have similar guidelines on this, they are all not the same.

This is one of the biggest advantages of working with an independent insurance agency like Davis Insurance Associates. We understand carrier differences, not just policy theory.

When a Policy Endorsement May Be Required

In some situations, the insurance company may still allow the existing homeowners policy but require updates. This can include adding resident relatives, updating underwriting notes, or issuing endorsements to clarify occupancy.

When a Policy Rewrite Is Often Required

If the named insured no longer lives in the home, many insurance companies require the policy to be rewritten to a non owner occupied form. This is especially true when the arrangement is long term.

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Common Situations When a Family Member Lives in Your Home

Letting an Adult Child Live in Your Home

If an adult child moves into your home:

• Some insurers still consider this owner occupied

• Others may reclassify the home depending on age, duration, and independence

Liability coverage becomes especially important here, particularly if:

• The child has guests

• The child owns a pet

• The home has higher risk features like a pool

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Parents or Relatives Living in the Home Long Term

This is common after retirement, health changes, or downsizing.

Key underwriting questions include:

• Does the named insured still live there?

• Is the arrangement permanent?

• Who is responsible for maintenance?

If the named insured no longer resides in the home, many standard homeowners policies no longer fit, even though the occupant is family.

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Inherited Homes With Family Members Living There

This is especially common in South Carolina.

When a home is inherited:

• Ownership may change

• The policy may still be written in the deceased owner’s name – sometimes we see a family member move in. Know what happens to home insurance when the policyholdrer passes away.

• The occupant may not be insured under the policy

This can create serious coverage problems if not corrected quickly.

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Does It Matter If No Rent Is Being Charged?

A common misconception is that charging no rent keeps everything the same.

Why Rent Free Does Not Always Mean No Insurance Impact

From an insurance standpoint:

• Rent is only one factor

• Occupancy and liability matter more

• A non owner occupied home is often viewed as higher risk

Some insurers are comfortable with rent free family occupancy. Others are not.

Again, carrier rules vary.

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Liability Risks When a Family Member Lives in Your Home

Property coverage is important, but liability is often the bigger issue.

Who Is Covered If Someone Is Injured?

If someone is injured at the home:

• Is the occupant considered an insured?

• Is the owner personally exposed?

• Does your umbrella policy recognize the risk?

Why Liability Exposure Often Increases

When family members live in a home you own but do not occupy, liability should always be reviewed, especially in coastal areas where claims are more frequent and severe.

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When Your Home Insurance May Need to Be Changed

Depending on the situation and the insurance company, proper coverage may require:

• Adding or updating resident relatives

• Endorsing the homeowners policy

• Rewriting to a non owner occupied homeowners policy

• Adjusting dwelling limits or loss of use coverage

• Coordinating coverage with a personal umbrella policy

These are not after the fact fixes. They need to be done before a loss.

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Why Reading Your Home Insurance Policy Is so Important

We encourage clients to read their policies, but policies are written in legal and technical language that can be misleading without context.

Two policies may look similar but define:

• Residence premises

• Insured

• Relative

• Occupancy

Very differently.

This is why a conversation with your insurance agent is great, and reading YOUR insurance policy is recommended.

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Coastal Considerations for Myrtle Beach and South Carolina Homeowners

Along the coast, occupancy matters even more because of:

• Wind and hurricane deductibles

• Vacancy and unoccupancy exclusions

• Water damage limitations

• Higher claim scrutiny

What might be acceptable inland may be problematic in a coastal market.

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Why You Should Talk to Your Insurance Agent Before Changing Occupancy

One of the most important things we tell homeowners:

If the way your home is being used is changing, call your insurance agent first.

That includes:

• Letting a family member move in

• Moving out yourself

• Leaving the home vacant (be carefull here) – Read more from this III blog When No One’s Home: Understanding Role of Vacancy Insurance.

• Inheriting a property

• Allowing long term guests

A short conversation can prevent claim denials, non renewals, and uncovered liability.

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How Davis Insurance Associates Helps Homeowners Navigate These Situations

At Davis Insurance Associates, we have been writing home insurance for Myrtle Beach and the Carolinas since 2008, including complex occupancy situations.

As an independent agency, we:

• Understand how different insurers treat family occupancy

• Ask the questions most homeowners do not know to ask

• Structure policies correctly from the start

• Advocate for clients when claims occur

Our goal is not just to sell insurance. It is to make sure it works when you need it.

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Final Thoughts on Family Members Living in Your Home

Letting a family member live in your home may feel informal, but your insurance policy is not.

If occupancy, ownership, or use changes, your insurance should be reviewed.

If you are unsure whether your home is still properly insured, or you are considering letting a family member live there, our team at Davis Insurance Associates is happy to help.

START HOME INSURANCE QUOTE

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Disclaimer: This article is for general informational purposes only and does not replace the terms, conditions, or exclusions of any insurance policy. Coverage varies by carrier and situation. Please consult with a licensed insurance professional regarding your specific circumstances.