Are Roommates Covered Under Renter’s Insurance?

Sharing the costs of a Mobile rental house with a roommate is one good strategy to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To get the best answer to that question, we need to have a clear understanding of what a renter’s insurance policy does, who it covers, and what the pros and cons are of sharing a policy.

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. If in case there’s a fire or burglary, a renter’s insurance policy will help a renter replace personal items that were damaged or stolen, and also protects a tenant against liability claims in the event someone injures themselves while visiting the property.

For the most part, individual tenants carry their own renter’s insurance policy. Renter’s insurance typically only covers you and your personal property; it does not cover other people who are dwelling in the house. But it is often possible to share renter’s insurance with a roommate. Though state laws vary, in some states, you can add a roommate to a renter’s insurance policy. In most cases, to share a renter’s insurance policy, each person covered by the policy would need to be listed on the lease as well as listed on the insurance policy itself.

There are conditions when sharing a renter’s insurance policy makes sense. If you are sharing a Mobile rental home with a relative or with a partner in a stable, longstanding relationship, it may all pay off to help reduce the cost.

But just because you can share renter’s insurance doesn’t necessarily mean that 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 show up on your insurance record as well. That may mean increased insurance rates at some point, even though you were not the one who filed the claim.

There are 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 personal possessions are. If one roommate has far more valuable things than the other, then the roommate with the budget furniture will end up paying more than they should in a 50/50 split.

It’s also crucial 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 pondering 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.

If you’d like to talk to an expert on the matter, contact Real Property Management Azalea City and ask one of our Mobile property managers. From owners to tenants, we can help. Contact us online or call us at 251-345-6224 today.