Are Roommates Covered Under Renter’s Insurance?

Splitting the expense of a Portsmouth rental house with a roommate can be an effective way to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To respond to that question, we need to clarify first what a renter’s insurance policy covers, who it includes, and what the pros and cons are of sharing a policy.

Many landlords require tenants to buy renter’s insurance. The property owner probably has insurance covering the rental property, but that policy does not protect a tenant’s personal property. When it comes to fire or burglary, a renter’s insurance policy will help a renter to reacquire personal items that were damaged or stolen, and also protects a tenant against liability claims if someone got injured while staying at the house.

Regularly, individual tenants provide their own renter’s insurance policy. Renter’s insurance only covers you and your personal property; the other person living in the house is not covered. But it may be possible to share renter’s insurance with a roommate. Even though state laws differ, in other states, you can add a roommate to a renter’s insurance policy. For some circumstances, to share a renter’s insurance policy, each individual covered by the policy will have to be listed on the lease and also listed on the insurance policy itself.

There are scenarios when sharing a renter’s insurance policy makes sense. When you are sharing a Portsmouth rental home with a relative or with a partner in a stable, longstanding relationship, it may be worth it to help reduce the cost.

Even though you can share renter’s insurance, that doesn’t automatically mean that you ought to. If you share a renter’s insurance policy with a roommate, you also share their insurance history. When the time comes that your roommate files a claim, that claim will also appear on your insurance record. It could mean increased insurance rates in the coming years, even if you were not the one who filed the claim.

There are lots of other important matters to remember once you share a renter’s insurance policy. The cost of renter’s insurance mostly depends on how valuable your personal belongings 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 is also imperative to bear in mind that roommate arrangements can change quickly. If one roommate has to leave because of a new employment opportunity or other personal reasons, the expense of the renter’s insurance policy will be left entirely on the remaining roommate. It can cause you to spend far more than you should for that policy.

If you are thinking about sharing a renter’s insurance policy with a roommate, it’s crucial to understand the individual situation first. Afterward, communicate to both an insurance agent and your roommate. Having an open and honest conversation with all those concerned will assist you in making the right decision.

If you’d like to talk to an expert on the matter, contact Real Property Management Hampton Roads and ask one of our Portsmouth property managers. From owners to tenants, we can help. Contact us online or call us at 757-395-4274 today.