Can I Share Renters Insurance with My Roommate? It is possible to share the renter’s insurance with your roommate, which can save you some small change, but most times it’s a bad idea. If you stay with other roommates in one building, you will all be using the same toilet, bedroom, kitchen, and even sitting room. However, most companies advise roommates to get their personal renters insurance plans because they won’t be covered if their properties get damaged by fire.
What is Renter’s Insurance?
Renters insurance is a type of asset insurance that pays off your belongings if they are stolen or destroyed. Just like homeowners insurance, it safeguards your belongings from disasters like explosions, fire outbreaks, and more. It provides liability for unseen events on your belongings.
If you don’t purchase renters insurance, the house owner will only cover the building, but you will take the responsibility to replace your damaged properties.
Can I Share Renters Insurance with My Roommate?
Yes, you can share renters insurance with your roommate, as long as the state and your insurance policy accept it. But in some cases, it’s a bad idea to share the renter’s insurance with your roommate. Here are a few reasons why.
Unable to Decide the Right Coverage Fee for Your Property
You will need sufficient renter insurance to cover your personal properties if they are destroyed by fire or stolen by someone. Typically, these personal properties could be furniture, clothes, electric appliances, and jewelry.
However, the situation becomes dire if you add your roommate’s belongings, especially if they are very expensive. For instance, your renter’s insurance plan may have a liability of $1500 for stolen jewelry, but it won’t be enough to cover the stolen item.
Claims Record
In this case, your rate could increase if your roommate keeps asking for claims. And per claim your roommate requests, it will be added to your claims record. Also, if you are included in your roommate’s policy and a claim is requested by both of you, the company will pay your roommate.
In addition, you will have to think of how to split the check between you and your roommate. However, if your roommate is trustworthy, it won’t be an issue, but it could turn out to be tricky even later.
Liability Protection
Liability protection, along with your insurance, helps to pay off any incidents on your property that you’re involved in. However, if you distribute your renter’s insurance with your roommate, you might take responsibility if your roommate causes a legal problem.
For instance, if a visitor comes to your apartment and accidentally trips over, your liability insurance might cover medical bills up to its limits.
Splitting Up Limits
If you obtain property coverage of $15,000 as an individual, it simply means you are splitting the policy limit. However, you and your roommate would team up to determine the amount of coverage needed, which could end up having different coverage.
Evacuating Roommates
In this situation, if your roommate evacuates from the apartment, you will have to remove the old policy and get a new one. Which means you will have to find a new roommate and an insurance policy.
Sharing renters insurance with your roommate might look like a good idea but it’s a bad idea. Additionally, if your roommate is authorized to cover the monthly premium and omits payments, you might be at risk of being uninsured.
How To Choose the Best Renters Insurance Policy
Choosing the best renters insurance needs some consideration and thinking. Here are a few steps on how to get renter’s insurance:
Decide the amount of coverage required
Begin by deciding how much coverage you require for you and your roommate by making a home inventory list. You can modify types of coverage, like liability and extra living expenses. Moreover, you can get liability coverage equal to what someone might take from you in a lawsuit.
Indicate Renters Insurance Companies
Indicating rental insurance companies is a good start with your auto policy. However, you may be eligible for a good bundling discount just by purchasing both car and renter insurance.
In addition, you can search for companies that provide more than just the basics, like identity theft services or coverage for water backups.
Compare Quotes
After indicating some companies, the next thing to do is to compare quotes. You can either get quotes on the lender’s website, call an agent, or utilize websites that offer quotes from different companies.
Choose a Company and Apply
After calculating how much insurance you need and reviewing insurance quotes, you can choose a lender and provider. Moreover, if they approve your application, you can usually get covered on the same day.
How to Add Renters Insurance with My Roommate
Sharing renters insurance with your roommate is different from sharing a broadcast multicast service or a Netflix login. However, if you choose to purchase renters insurance, here are some steps to follow:
Evaluate your Roommate
If your roommate is someone with whom you’re familiar or not. It is essential to know if you can trust them to cover their expenses on time and share checks equally. However, it is recommended to consider it before entrusting your finances to someone else.
Take Your Inventory
Before collecting renters insurance, you should make a video of every property you and your roommate have. Show each room and what’s in all the closets and drawers.
Typically, this will help you both figure out how much your and your roommate’s belongings cost and how much insurance you should get. Also, getting a list of all your belongings is important if something bad happens. This is because it helps you get all the money you should from the insurance.
Have a sincere conversation with your roommate
You and your roommate should discuss the amount of coverage to obtain. Also, share the expenses, and decide who will take responsibility for the payments. Also, you have to talk about splitting the claims if either one of your properties gets damaged more than the other.
Consult with an Agent
An agent can evaluate the amount of coverage required. Also, they can discuss with you the advantages and disadvantages of sharing renters with roommates.
Request about Bundling
Even if you share the renter’s policy with your roommate or not, it’s a good idea to ask your agent about discounts. Putting your renter’s insurance together with your car insurance can be cheaper because of bundling discounts.
For instance, you might save enough on your car insurance to cover or even cancel out the cost of getting renters insurance.
Conclusion
Sharing renters insurance with a roommate can be done, but it might not save money in the end. It’s wise to consider the advantages and disadvantages first. Additionally, if you purchase a renter policy, make sure both you and your roommate understand the terms and conditions of how it works.