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Are Roommates Covered Under Renter’s Insurance?

Levittown Roommates Moving Into HomeSplitting the cost of a Levittown rental house with a roommate can be a good idea 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 inquiry, we need to know 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 for 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 repay personal items that were damaged or stolen, and also protects a tenant against liability claims should someone harm themselves while visiting the property.

Most of the time, individual tenants carry their own renter’s insurance policy. Renter’s insurance typically solely covers you and your personal property; it does not cover other people living in the house. But it is often possible to share renter’s insurance with a roommate. Albeit 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 situations when sharing a renter’s insurance policy makes sense. If you are sharing a Levittown 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 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 in the future, even though you were not the one who filed the claim.

There are several other vital things to ponder upon before deciding to share a renter’s insurance policy. The cost of renter’s insurance is usually 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 likewise important to remember those roommate arrangements can alter without warning. If one roommate needs to move because of a new job opportunity or different reasons, the cost of the renter’s insurance policy may fall completely on the remaining roommate. This can lead to paying way more than you should for that policy.

If you are considering 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 Prosperity and ask one of our Levittown property managers. From owners to tenants, we can help. Contact us online or call us at 267-433-4200 today.

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