Roommate’s Renters Insurance

Many people wave off the idea of a renter’s insurance policy because their roommates have them. Unfortunately, a roommate’s insurance policy may not provide coverage for all belongings in a shared living space. Learning some pertinent facts about renter’s insurance and roommates will help you decide if you need your own policy.

Does Your Roommate’s Renter’s Insurance Policy Protect You?

The insurance policy of your roommate probably does not protect you from financial loss if there is a fire, earthquake, flood or burglary. When the insurance company determines how much money they owe your roommate for his or her damaged property, they will not include a payment for your belongings.

Renter’s Insurance Options With Your Roommate

You and your roommate have two options when it comes to purchasing insurance coverage. You can each get renter’s insurance independently or purchase a joint policy that will cover both of you.

Purchasing a Renter’s Insurance Policy With Your Roommate

You and your roommate can purchase a policy that has both of your names on it. In this case, everything on the property will be covered regardless of who owns it. Joint policies are also less expensive, which allows you to save money by splitting the cost.

The Disadvantages of Joint Renter’s Insurance Policies

Entering into financial contracts with friends can get messy. Consider what happens if a fire damages something like a cupboard or bookshelf that contains property owned by both people. The insurance company will issue one check to pay for the property, which often does not completely cover the original cost for the damaged items.

In this case, the roommates must decide how to split the money. Such situations can bring the worst out of people if they feel like someone is taking advantage of them.

Another drawback to a joint renter’s insurance policy is that if one of you files a claim, the premiums will increase for both parties.

Purchasing a Separate Renter’s Insurance Policy

Getting your own renter’s insurance policy offers the most security because you can control how much coverage you have and you do not have to worry about splitting costs, reimbursements or claims with anyone else. Plus, renter’s insurance policies often cost less than 20 dollars per month, which means most people can easily afford them.

• Your roommate’s renter’s insurance policy probably does not cover your property.
• You can purchase a joint policy with your roommate or choose insurance separately.
• Joint policies can complicate your relationship because you and your roommate will have to decide how to split any money you receive and your own insurance rate can increase if your roommate files a claim.
• Purchasing a separate renter’s insurance policy offers the most security.

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