Did Your Grad Receive a BB (Bachelor of Boomerang) Degree?

College graduation! The pictures, the gown, the caps in the air, the world awaits!

Yet many recent graduates will find themselves awaiting that world after returning to live in their parents’ home. Whether due to lifestyle changes, generational preferences or simply the economy, today’s graduates often find themselves wondering how their parents’ generation ever survived striking out on their own during and after college.

college graduates

Those nostalgic times of “gone to look for America” via small apartments, shared houses, trailers or tents seem more fairy tale than reality to today’s often student-loan laden graduates and young adults. And it is not just recent graduates that return. Often adult children who have previously established separate residences find themselves returning to the nest following economic trial, divorce or illness, sometimes with their children in tow. This phenomenon of adult children returning home to live has become so common it has garnered its own name: the boomerang generation.

Regardless of the motivation or reason, Davis Dyer Max reminds you that wherever your adult children choose to live, proper personal insurance protection is crucial. And not just the obvious health and auto coverages. Even those living in their parents’ home may have accumulated significant personal possessions requiring protection in case of fire, storm or theft. Add in children, pets, hobbies, possible home-based businesses and visiting guests, and your boomerangers are also subject to allegations of liability for injury or property damage to others.

There may be options to provide some of the needed protection under the parents’ current insurance. But there are often complications, limitations and other considerations in play, based upon myriad factors — such as your child’s age, marital status, and medical condition.

The best solution? Once you are aware your child will be moving back in (or staying after a previously assumed move-out date), schedule a time with your agent for a complete review of your current personal insurance program. At that time, your key coverage considerations can be reviewed and options discussed. Armed with the proper information and counsel, you can then adapt your program to your revised circumstances. In those areas best addressed by your child purchasing his or her own coverage, your agent will be glad not only to arrange those policies, but also to be sure they coordinate properly with yours to avoid needless gaps or overlaps.

We also recommend you consult with your financial and tax advisors as to any changes or impact your new situation may have on your personal financial planning and retirement savings, especially if your resident adult children are in need of significant financial assistance.


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