our 5 yr old grandchild cannot tolerate being alone when at home. Even if someone is in the next room, she has to go there. She needs someone to read and stay with her while she goes to sleep. Can't play in her room without someone there. When asked why, she says she's afraid
I'm not sure what the question is, but I'll interpret as, "How should we respond if a child is unable to do anything alone?"
I think the child is showing less tolerance for solitude than average for that age, but it doesn't mean that something is wrong. If you are grandparents, you probably grew up at a time where children's fears and solitude were widely ignored, which is not necessarily the best thing. I would respond by ensuring she has the company of other people, whenever she desires it. That way, she will not be forced into a situation that makes her afraid, and will probably gradually develop more confidence.
Of course, if you are grandparents, you may not be the everyday adults in her home, and this makes it more difficult and less appropriate for you to change what she's used to. If her parents don't force her to be alone, you shouldn't either. You should discuss this with her parents.