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Are Roommates Covered Under Renter’s Insurance?

Santa Clara Roommates Moving Into HomeSharing the expense of a Santa Clara rental house with a roommate can be a good idea to save money on rent, utilities, and more. But how about renter’s insurance? Can roommates share a single renter’s insurance policy? To address this inquiry, we have to comprehend what a renter’s insurance policy does, who it protects, and what the pros and cons are of sharing a policy.

Many landlords require tenants to buy renter’s insurance. The property owner possibly has insurance that protects the rental property, but that policy does not protect a tenant’s personal property. In case of a fire or burglary, a renter’s insurance policy will help a renter reacquire personal items that have been damaged or stolen, and also protects a tenant against liability claims should somebody get injured while visiting the house.

In most instances, individual tenants buy their own renter’s insurance policy. Renter’s insurance normally only covers you and your personal property; other people living in the house are not included. Yet renter’s insurance may also be shared with a roommate. Even though the state laws differ, in some states, you can add a roommate to a renter’s insurance policy. In general, to share a renter’s insurance policy, every person covered by the policy will need to be listed on the lease and also listed on the insurance policy itself.

There are circumstances when sharing a renter’s insurance policy makes sense. If you are sharing a Santa Clara rental home with a relative or with a partner in a stable, longstanding relationship, it might be worth it to help reduce the cost.

Yet even though you can split renter’s insurance, it does not automatically 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 would also appear on your insurance record. That could mean increased insurance rates someday, although you were not the person who filed the claim.

There are a couple of other crucial things to remember before sharing a renter’s insurance policy. The cost of renter’s insurance always depends on how costly your personal belongings 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 significant to keep in mind that roommate arrangements can change unexpectedly. If one roommate decides to transfer due to a new job position or other purposes, the expense of the renter’s insurance policy will be left to the remaining roommate. It can cause you to spend more than you should for that policy.

If you are thinking about splitting a renter’s insurance policy with a roommate, it’s essential first to consider the individual situation. At that point, speak to both an insurance agent and your roommate. Holding an honest discussion with those concerned will help you make the right decision.

If you’d like to talk to an expert on the matter, contact Real Property Management Southern Utah and ask one of our Santa Clara property managers. From owners to tenants, we can help. Contact us online or call us at 435-673-4242 today.

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