Insurance Roadmap for Families (Ways to Update Your Insurance as Your Children Grow)

Navigating life as a parent can be difficult for anyone. Without a roadmap to follow, it’s easy to feel overwhelmed with everything you have to do to provide the life your children deserve.

With families of our own, the team here at Berry Insurance understands a thing or two about just how much goes into raising kids! With every unexpected hiccup life can send your way, it’s only natural to want to ensure you have the best insurance coverage. But what will you need?

Just as your kids will rapidly outgrow the cutest baby clothes, your insurance policies can quickly surpass your family’s needs if they aren’t updated accordingly each year. So, we’ve outlined a guide on types of coverage or updates you should consider making on your policies as your children and family grow!

1.) Should I update my home insurance when I have a child?

If you’re having a child, it’s a good idea to let your insurance agent or provider know so they can update your policy records and suggest what areas you may want to change. While having a newborn won’t outright affect your homeowners insurance policy, you may want to raise the limits on dwelling or personal liability on your homeowners policy.

If you plan to undertake any major renovations to your home for your new child, such as a nursery or new bathroom, increasing dwelling coverage can help make sure the structure of your home is covered from any unforeseen damages.

With a new little one running about, you’ll likely want to safety proof the entire house! But for when you can’t, increasing your personal liability coverage can help to cover medical payments for claims of bodily injury and property damage to others. As an example, if you have a friend and their child over for a playdate and they are injured on your property, your personal liability coverage would help to cover the costs of their medical expenses as well as any legal fees/settlements.

2.) Should I get life insurance as a parent?

Becoming a parent can be the perfect time to consider setting up a life insurance policy to create a financial safety net for your family. With dependents under your care, having life insurance provides financial security to your family if you were to pass away. This can help cover funeral costs, debt payments, continuation of the late policyholder’s income, college savings for children, and other final expenses.

There are two main types of life insurance:

• Term: This type of life insurance provides coverage for a certain time period, usually 10 to 30 years. If the policyholder passes away during the term, their beneficiaries receive death benefit as payment, but the policy loses all value once the term ends.
• Permanent: This coverage provides lifetime protection including both a death benefit, being compensation for the beneficiary once the insured passes, and a cash benefit, which is a savings account for the insured while they are still alive.

3.) Umbrella insurance for families

For added protection to your family, consider adding umbrella insurance coverage. Sometimes known as excess liability or personal liability, umbrella insurance supplements your existing liability coverages, such as auto, homeowners, renters, and condo insurance - offering an extension of your existing coverage.

Umbrella insurance covers the costs of damages or legal defense arising from incidents of property damage or injury when you are found responsible. This coverage kicks in when other forms of insurance (auto, home, renters, condo) have already been exhausted.

Umbrella insurance can help to provide your family with peace of mind that you will receive full coverage if anything were to go wrong during your next baby shower, play date, or babysitter that gets injured on your property. To learn more about this affordable safety net, check out our breakdown of the cost of umbrella insurance in Massachusetts.

4.) Do I need insurance for nannies and babysitters?

If you are in need of some extra help around the house, you may be interested in hiring a nanny, au-pair, or other domestic employee. If your domestic employee works 16+ hours a week, you are required by Massachusetts law to purchase workers compensation insurance.

Workers compensation insurance typically covers injuries to employees, lost wages, medical expenses, and employer liability. For each nanny that works for you, the base charge is $141 per year. (With fees and state assessment charges, the total cost for one nanny on a $1 million workers compensation policy is $286.)

If you employ a nanny or domestic employee to work less than 16 hours a week, you are not required to insure them, but you still should guarantee coverage if they’re hurt on the job.

5.) How to insure a home-based business

If you choose to operate a business from the comfort of your home, or begin taking care of other’s children/animals as a daycare, you will need to speak with your insurance provider about updating your policy.

Depending on your business level of exposure, foot traffic, and inventory, you may need to purchase a standalone business insurance policy to be fully covered. Smaller low risk home-based businesses will typically be covered by homeowners policies, but additional endorsements are also available.

Our guide on home-based businesses covers which types of businesses are often excluded and how much extra coverage will cost you: Are Home-Based Businesses Covered by Homeowners Insurance?

6.) Builder’s risk for home projects

Need some extra room around the house? If you plan to expand your current residence with an addition, garage, or extensive remodel then you may want to consider having builders risk insurance coverage.

Also known as “course of construction” insurance, builder’s risk insurance protects the property and homeowner from financial loss resulting from damage or loss of the project’s structure and materials during the course of construction.

While small jobs where you are still living in the home during the work are typically covered by a home insurance policy rather than builders risk, larger renovations or additions may warrant additional coverage. Be sure to speak to your insurance agent prior to construction, and learn more about whether or not a builders risk policy is right for your next home improvement here: Do I Need Builders Risk Coverage for my Home Project?

Additionally, if your new home construction project takes on a life of its own, you may be interested in learning how to go about insuring a second home.

7.) Insurance coverage for pets

Pets can be a wonderful addition to any family, whether it is a cat, dog, or something more exotic! But when you add a new member to your family, you’ll want to make sure they’re fully protected. Pet insurance offers health insurance-like protection for your pets, covering payments for illnesses, accidents, and routine wellness.

Pet insurance coverage works on a reimbursement model, meaning that you would be responsible for paying for your pet’s treatment and would be reimbursed by your insurance provider based on your coverages, deductibles, and the reimbursement percentage chosen.

While not a necessity for every family, pet insurance can help lessen the impact of unexpected and expensive vet visits. Check out this guide to learn about how pets are covered by insurance, even exotic and barn animals: Does Homeowners Insurance Cover Animals? (Dogs, Cats, Chickens, and Exotic Pets)

8.) RV insurance for the next family roadtrip

Families each year pile into recreational vehicles to explore the country and create a memorable family getaway. However, many are shocked to learn that RVs are not covered by standard auto insurance policies. Instead, you will need to purchase specialized insurance to cover your recreational vehicle.

Operating a lot like car insurance, RV insurance coverage provides collision, comprehensive, liability and more for your recreational vehicle. This protects you from significant out-of-pocket expenses (from either damage or injury) if your RV were to be involved in an accident.

The cost of RV insurance will vary depending on the vehicle’s features, frequency of use, driving history, as well as the coverages, limits, and deductibles - but generally cost around $1,000 - $2,500 per year ($83-$208 a month).

9.) Will building a swimming pool affect my insurance?

When the weather is nice and you’re looking for the perfect stay-cation activity, many families will invest in a brand new pool to beat the heat! However, as it is a significant addition, swimming pools will require making some adjustments to your current homeowners policy.

Pools would be covered under the “other structures” section of your homeowners insurance policy, the same as other detached structures like sheds, fences, detached garages, or driveways. This means that incidents that cause damages to your swimming pool will be covered up to your other structures limit.

But before you add your new pool, you should notify your insurance company to see if your policy needs to be adjusted to account for the new exposure. As a rule of thumb we’d typically recommend increasing other structures' coverage and liability insurance to cover yourself for damages to your pool as well as damages to others/guests.

Before jumping in the deep end, read this article breaking down everything you should know as a homeowner before breaking ground on a new pool: Swimming Pools and Insurance: What You Need To Know.

10.) Should I insure my upcoming party or large social gathering?

From birthdays to graduation parties and everything in between, hosting large social gatherings for your family is all fun and games until something goes wrong!

So what can you do to protect yourself when planning a large event? Special event insurance coverage is offered as additional coverage to protect large gatherings from costly accidents or losses that might ruin your special day.

While not a requirement for small parties, as your standard homeowners insurance policy will cover damages or liability related to an event, having special event coverage in place can help protect you from any large claims that could arise during festivities.

11.) How divorce will affect your insurance

Divorce likely isn’t one of the boxes you planned to check off, but unfortunately is a very common reality many families face - one that can have ramifications on your insurance.

If you and your partner decide to separate, you will need to update your home, auto, and potentially life insurance policies if one of you obtains a new residence.

Learn more about how divorce and separation will impact your policies here: How to Update Your Insurance Policies After a Divorce.

12.) How to handle online defamation claims

As your child grows up they will inevitably find themselves with access to more technology and social media. While tech can be fun and exciting, it can also present new challenges and potential claims if you’re not careful.

If you or your child posts something regrettable about another person or organization online, or if something is posted about you/your family, you could find yourself dealing with claims of online defamation. Online defamation may involve either written or spoken statements online, and could result in costly claims - one that we are seeing more of each year.

Adding personal injury coverage to your homeowners insurance policy would cover legal fees that arise from online defamation. To learn more about this coverage and situation, read this guide: Is Online Defamation Covered Under Home Insurance?

13.) How to increase protection through scheduled items

Raising kids comes with an expensive price tag attached. And if you ever have to buy expensive laptops, sports/school equipment, musical instruments, or other large purchases then you may be interested in learning more about scheduling items on your insurance policy

Scheduled items are additional coverages that can be added on to existing policies (such as home, condo, or renters), guaranteeing greater protection of any valuables than under standard personal property protection. While not necessary for less expensive items, it can be a perfect way to help cover valuable assets your family owns.

Learn more about how you can schedule an item on your policy today: Everything You Need To Know About Scheduled Items.

14.) How to insure classic cars, boats, and motorcycles

Feeling a mid-life crisis coming on?

As your kids grow up it’s only natural to want to feel young again yourself, or spend some of your extra hard-earned cash. If a big exciting purchase is calling your name - like a classic car, boat, or even a motorcycle, then you’ll need to learn more about how to best protect your new investment!

Classic car insurance offers specialized coverage similar to a standard car insurance policy, but tailored for collectible vehicles that aren’t driven everyday - with lower prices and unique services.

Watercraft insurance covers various boats and watercraft, from large fishing boats and yachts all the way to jet skis. While homeowners insurance may cover boats of a certain size, it is unlikely to offer full coverage for your boat/watercraft.

Operating similar to standard auto insurance, motorcycle insurance offers protection for the bike, driver, and medical payments from potential accidents.

Due to motorcycles having unique exposures and risks when compared to standard automobiles, they require specialized insurance coverage. Operating similar to your typical auto insurance, motorcycle insurance offers protection for the bike, driver, medical payments, and more. To learn more about how to obtain motorcycle coverage and the cost, read this guide: How to Insure Motorcycles in Massachusetts.

15.) Rules new teen drivers should follow

Ah teen drivers, one of the most stressful times as a parent! This time for a family can be as exciting as it is stressful, making it important to stay ahead of the curb and know the rules of being a permitted driver or junior operator.

Parents should be aware that permitted drivers must always have their learner’s permit when driving and cannot operate a vehicle unless they are accompanied by a parent or legal guardian above 21 who has been licensed for over a year.

Additionally, we always want to stress: put phones down! Statistically teen and young drivers are major causes of auto accidents - especially ones distracted with devices. On top of safety concerns, it’s also illegal in Massachusetts to use electronic devices while behind the wheel, so it is best to keep phones out of your hands when driving!

For our top tips new drivers need to follow, read this article: Top 5 Rules For New Drivers (Junior Operator Licenses, Permit Rules, and New Driver Insurance).

16.) Do teen drivers need their own auto insurance?

Should teen drivers have their own car insurance?

In most cases we recommend against teenaged or young drivers getting their own auto insurance policy separate from their parent/guardian. Adding a new driver to your existing auto policy is often more affordable and simpler than going through the potentially difficult process of having them obtain their own policy. Plus if your new driver is a good student, they could earn you potential good grade discounts on your policy frequently offered by insurers.

The only situation where your child may require their own separate policy is if they own a vehicle in their own name, however if approved you can expect a higher policy premium due to lack of experience and perceived risk.

17.) How much does it cost to insure new drivers?

The cost to insure a new driver is affected by many factors, such as their driving education, vehicle garaging, who owns the vehicle, and other potential policy discounts. However, a good estimate is that you can expect your auto insurance premium to increase by $1,000 - $3,000.

18.) Is my child insured while away at school?

If you’ve made it this far, congrats! Now that your child has successfully become a young adult they may be looking to go off to college. And while this is an exciting time for any young person, it does beg the question: “do they still need to be on my insurance if they’re living at school?”

And it’s a good question!

While your child is living at school, most insurance companies will cover their belongings for the full limit of your policy. If they are instead living off-campus while going to school, they should obtain a renters insurance policy to cover their belongings and to give them liability coverage. If your child will be renting, and having a roommate, you should make sure that everyone has their own coverage, as a renters policy will likely not extend to roommates.

The average college student’s renters insurance policy costs less than $200 annually and includes coverage for personal belongings and personal liability coverage.

Additionally, if your child takes a car to college, you should notify your insurance agent or provider, as where the vehicle is being garaged can affect your policy.

Finally, this can be a good time to say that having a student with good grades can actually save you money! Many insurance companies will offer “good student discounts” that could save you up to 10% on your auto insurance policy.

Protection for every step of the way

Being a parent will likely be the biggest adventure of your life. And when you have little ones looking up to you for all the answers along the way, it helps knowing what comes next.

Now that you’ve followed the roadmap on the major areas of insurance coverage you should add or update as you and your kids grow, you can set off on your journey knowing what you need to do to be fully protected.

Looking to stay even more in the know? Then check out our cheat sheet on different insurance terms. Don’t worry there isn’t a quiz, but it will make understanding your policy a lot easier!