Thinking About Hiring a Nanny? How Your Home Insurance Is Impacted
Many people are busy, yet they want to provide a home for their children. Sending children to daycare is no longer ideal in some situations. Hiring a nanny could be. If you hire this individual, you are employing someone to work in your home. Do you need to update your home insurance to reflect this? It is important to consider all sides to this situation before making a decision. In many cases, your home insurance agent should know about your decision. Here’s what matters.
It is Not About Trust
When hiring a nanny, you do so because you want to create a safe place for your loved one. You also want to welcome this person into your family. But, in fact, you are an employer.
As a result, you must ensure your home is safe for that individual. To do this, contact your home insurance agent. Discuss the changes you may need to make. Here are a few key areas commonly needing adjustment.
In some states, liability insurance within home insurance only applies to those visiting a home. For example, if your son fell, you could not file a claim with your insurance company for his medical bills. However, if his friend falls, the other family might be able to make a liability claim on your policy.
How a state defines a nanny determines if he or she needs extra liability protection in the case of injury. Sometimes, you need a policy to cover that individual’s potential claims against you. As an employer, having workers’ compensation coverage for your employee is sometimes important. It helps cover claims of injury or illness from your nanny.
State laws dictate whether this is a requirement or an option, but having it minimizes your risks. Speak to your agent about any other concerns related to local guidelines.
Auto Insurance Concerns
Do you allow your nanny to drive your kids back and forth to school? Does the nanny use your car to do so? In this situation, there are a few key concerns related to nannies. For example, you may need to update your auto insurance to ensure the nanny has coverage on your policy. If the individual uses his or her car, again, you want to be sure proper coverage is in place.
Many factors can differ here. Whether the individual lives in your home matters. State laws also differ in terms of workers’ compensation. It is up to you to contact your home insurance agent to discuss options in your state. However, many people will find it is still affordable to obtain a nanny and get proper coverage in place to minimize risks. The key is doing this before you hire the nanny.