It’s a felony. People do get caught. What’s even more likely, though, is that years down the road the person needs to legitimize their income so they file a form saying you fails to give them a W2. Then you’re on the hook for all of the taxes (and penalties) even if criminal charges aren’t bright. It’s also a felony…

It also doesn’t make it limited to the property of the policy holder. The original comment is incorrect as it implied coverage for only personal effects.

As a lawyer I appreciate your explanation. You don’t have to be sued to trigger coverage. And as it pays for medical bills for injuries at the residence, it’s still beneficial for the person injured. In that sense, it protects anyone who may be present in the home.

This isn’t entirely true. My homeowners covers slips and falls and other things like that so there is some coverage beyond personal effects. And sometimes you need a rider because there may be caps on certain types of coverage.