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Renter’s Insurance and Roommates: Who’s Covered and Who’s Not

Two roommates at a table, using a laptop to explore renters insurance options together.
If you’re sharing the cost of a rental house with a roommate, you’re likely looking for ways to save money. But can you share a renter’s insurance policy as well? Here’s an overview of what renter’s insurance provides, who it covers, 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 are covered by their own policies, which apply only to the policyholder and their belongings. However, sharing renter’s insurance with a roommate may be possible in some states, depending on local laws. If state laws allow, you may be able to add a roommate to a renter’s insurance policy. To share coverage, both names must typically be listed on the lease and insurance policy.

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.

However, sharing a renter’s insurance policy isn’t always the best choice. If your roommate files a claim, that claim is recorded on your insurance history, potentially raising your insurance rates. Additionally, if one roommate has more expensive items, an equal cost split may leave one paying more than they should.

If your roommate needs to move, the remaining roommate could be responsible for the full cost of the renter’s insurance policy. Consider these factors carefully and consult both an insurance agent and your roommate to make an informed decision.

If you’re in Santa Clara and want advice on rental arrangements, Real Property Management Southern Utah is here to help. Our team supports owners and renters alike. Contact us online or call 435-673-4242.

 

 

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