Boomerangers Could Cause Insurance Implications for Parents - CoverLink Insurance - Ohio Insurance Agency

Your first question might be “what is a Boomeranger?” Well, as layoffs and a dismal job market continue, many Gen-X aged individuals are returning home to live with their parents because they’re unable to earn enough to support themselves… these individuals have been labeled as Boomerangers.

“In this economic environment, many young adults and their parents are finding themselves in a position they never expected,” said Ohio Department of Insurance Director Mary Jo Hudson. “A grown child moving back home can create insurance implications that must be considered carefully and understood to ensure everyone stays protected.”

Your Homeowners Policy

When young adults move back home with their parents, often the parents’ homeowners policy will be enough to protect the belongings of their boomeranger. However, this is not always the case! For example, when the young adult brings expensive electronics or high-valued jewelry home, the homeowners policy might not be adequate. This is why it’s so important to review your coverage with your agent.

Your Auto Policy

This is, potentially, a great way to save a few dollars each month. Most insurance companies are fine with including additional drivers on the parents’ policy as long as that driver lives in the same house. So why is this good news? Well, adding this vehicle could help you take advantage of additional discounts such as multi-car discounts and multiple policy discounts. Again, a great reason to review your policies with your agent.

Your Health Insurance

It’s become customary, in many states, for a parents’ health insurance policy to provide coverage for children through their late 20s, in no small part due to this boomeranger concept. In Ohio, beginning July 1, 2010, all group and individual health coverage plans must include provisions for providing coverage to children up to age 28. Yet one more reason to schedule that review with your independent agent to review all of your personal policies.

If you find yourself in this situation, or would just like to review your policies with us, we’re here to help!