Does the policy protect the Insured when they host Exchange Students

Are these exchange students covered while being cared for in a host families home?

Traditionally, home and contents policies were written to protect the Insured from a wide range of risks that may occur in the ordinary ownership/occupation of the home.

Over time some covers have expanded while in other cases cover has been reduced. Last year I did a series on pitfalls to look out for in such policies. (See http://www.allanmanning.com/?p=2284 and others).

Many Insured’s with school age children agree to host exchange students often from overseas. I did several times with students from Asia.

Insurance coverage is required for the property that these students may temporarily have in the host families home while liability cover is required for any loss or damage suffered by them arising from the negligence of the host family/owner of the building and to protect the family and student for any negligent act on their behalf giving rise to an otherwise claimable event under the liability section of the policy.

Based on the policies issued in the past, I expected that the insured home owner/host family would be protected by their home and contents insurance policy(ies). This, however, is not necessarily the case. Many have exclusions for the property of guests while many prevent a claim from a person, living with the Insured. Some say, normally living with the insured which of course could be interpreted in many ways.

I would urge any insurance broker to check the coverage of the policies that they recommend. With anyone hosting or contemplating hosting a student or any other guest is best advised to check their coverage with their insurance broker.

Having identifying the problem with one insurance broker, I had thought that the coverage could easily be obtained. How wrong I was, certainly with the one we were dealing with.

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