Rent free and cost free to them.
How Do I Insure A 2nd Home I Bought To House My Elderly Parents?
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Rent free and cost free to them.
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I suggest a different approach to addressing this situation. The only way you could obtain homeowners coverage on a house you don't live in is to be less than candid on the application. If a problem occurred, you may find yourself and your parents without any coverage.
To be eligible for most homeowners’ policies, a dwelling must be owner- occupied. The policy only covers “the dwelling on the residence premises”. If the named insured (you) don’t reside there, the insurance company could deny your claim.
Some insurers however will issue homeowner’s coverage to an insured(s) who has a life estate in a property. You could own the property; grant a life estate to your parents. They could obtain homeowners’ policy naming them as insured(s) and you; the owner of the property could be included as an “additional named insured” for your interest in the dwelling and the personal liability insurance. There is a standard endorsement available for that specific purpose. Your parents would be covered for their personal property, additional living expense and personal liability. You would be covered for damage to the dwelling and liability for injury or damage to others arising out of your ownership of the property.
In my opinion, this would be the most practical, effective and economical way to address this kind of a situation. It is probably more common than you think.