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Are Roommates Covered Under Renter’s Insurance?

Barling Roommates Moving Into HomeOne of the best ways to save money on rent, utilities, and more is to split the cost of a Barling rental house with a roommate. Then again, what about renter’s insurance? Can roommates share a single renter’s insurance policy? To clarify that question, we need to learn what a renter’s insurance policy does, 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 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 should someone injure themselves while visiting the property.

In most instances, individual tenants carry their own renter’s insurance policy. Renter’s insurance typically only covers you and your personal property; it does not include other people living in the house. But it is sometimes allowed to share renter’s insurance with a roommate. Although 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 times when sharing a renter’s insurance policy makes sense. In case you are sharing a Barling 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 if you were not the one who filed the claim.

There are a few other essential things to study 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 vital to remember that roommate arrangements can change quite abruptly. If one roommate has 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 end up with you paying far more than you should for that policy.

If you are thinking about sharing a renter’s insurance policy with a roommate, it’s necessary 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 First Choice and ask one of our Barling property managers. From owners to tenants, we can help. Contact us online or call us at 479-242-0791 today.

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