Are Roommates Covered Under Renter’s Insurance?

Distributing the cost of a Toledo rental house with a roommate can be an excellent method to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To answer that question, we need to understand what a renter’s insurance policy does, who it includes in its coverage, 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. 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 also protects a tenant against liability claims if in case someone would accidentally hurt themselves while visiting the property.

More often than not, individual tenants carry their own renter’s insurance policy. Renter’s insurance usually only covers you and your personal property; it does not include other people living in the house. However, it is sometimes possible to share renter’s insurance with a roommate. Even when state laws differ, in some states, you can add a roommate to a renter’s insurance policy. Most of the time, to share a renter’s insurance policy, each person covered by the policy would have to be listed on the lease as well as listed on the insurance policy itself.

There are circumstances when sharing a renter’s insurance policy makes sense. If you are sharing a Toledo rental home with a relative or with a 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 eventually 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 in the future, even though you were not the one who filed the claim.

There are a few other critical factors to take into consideration 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 worth noting that roommate arrangements can change without any warning. 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 spell disaster to whoever is left as it would mean paying far more than what is needed 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.

If you’d like to talk to an expert on the matter, contact Real Property Management Clarity Team and ask one of our Toledo property managers. From owners to tenants, we can help. Contact us online or call us at 567-200-2320/a> today.