Sharing the cost of a rental house with a roommate is a popular way to save money on rent and utilities. But can you share renter’s insurance, too? Here’s what you need to know about a renter’s insurance policy, including coverage details, benefits, and the pros and cons of sharing a policy.
Why Renter’s Insurance Matters for Tenants and Landlords
Many landlords require tenants to buy renter’s insurance. The property owner likely has insurance covering the rental property, but that policy does not protect a tenant’s personal property. In the event of a fire or burglary, a renter’s insurance policy will help a renter replace personal items that were damaged or stolen and protect a renter against liability claims should someone injure themselves while visiting the property.
Most of the time, individual tenants carry their own renter’s insurance policy. Renter’s insurance typically only covers you and your personal property, not including other people living in the house. However, sharing renter’s insurance with a roommate is sometimes possible. Although state laws vary, you can add a roommate to a renter’s insurance policy in some states. In most cases, to share a renter’s insurance policy, each person covered by the policy would need to be listed on the lease and the insurance policy itself.
Pros and Cons of Sharing Renter’s Insurance with Roommates
There are situations when sharing a renter’s insurance policy makes sense. If you share a rental home with a relative or partner in a stable, longstanding relationship, it may be worth it to help reduce the cost.
But just because you can share renter’s insurance doesn’t necessarily mean you should. If you share a renter’s insurance policy with a roommate, you also share their insurance history. If your roommate files a claim, that claim will also show up on your insurance record. That may mean increased insurance rates in the future, even though you did not file the claim.
A few other important things to consider before sharing a renter’s insurance policy. The cost of renter’s insurance is often based on how expensive your possessions are. If one roommate has far more valuable things than the other, then the roommate with the budget furniture will pay more than they should in a 50/50 split.
It’s also important to remember that roommate arrangements can change quite suddenly. If one roommate needs to move because of a new career opportunity or other reasons, the cost of the renter’s insurance policy may fall entirely on the remaining roommate. This can lead to paying far more than you should for that policy.
If you are thinking about sharing a renter’s insurance policy with a roommate, it’s important first to consider your individual situation first. Then, talk to both an insurance agent and your roommate. Having an honest conversation with everyone involved can help you make the right choice.
For more help navigating renter’s insurance options in White River Junction, contact Real Property Management Beacon. Our property managers assist owners and renters with their insurance needs. Contact us online or call 603-448-8808.
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