Whether you’re renting a house or an apartment, having a roommate to split bills and responsibilities with can be quite helpful, as long as each person pulls his or her own weight. Yet it’s important to remember that insurance works a little differently than utilities and the other stuff you’re sharing. There are specifics in renter’s insurance policies about what and who will be covered, and under what circumstances. Here’s a look at some things to keep in mind about this type of coverage.

 

Who and What Your Renter’s Insurance Policy Covers

When it comes to who can get benefits from a specific renter’s insurance policy, it is quite simple. Only the policyholder is covered, in addition to any individuals listed as insured on the policy. So, if the roommate isn’t listed, they cannot reap any benefits from it or have any of their possessions covered by it. The following lists several examples of what will generally be taken care of through the most basic renter’s insurance.

 

• Damages to your belongings due to some natural disasters, but not all (earthquakes or floods may require additional coverage)
• Housing costs to provide a temporary place to stay in the event your rental home is damaged to the extent that it is not livable
• Loss of your valuables and material possessions from burglary or theft
• Damages and loss from fire, smoke, or explosions

 

Personal liability coverage in a renter’s insurance policy could also pay for medical and legal costs in case one of your guests or another visitor is injured at your rental home.

 

What’s Not Covered?

While most renters’ insurance policies cover a lot for the average tenant, make sure you understand what is excluded. Some of these situations and belongings require additional coverage or riders to be purchased.

• Earthquakes or floods
• Expensive collections or high-value items
• Sewer/drain issues

 

Pros & Cons of Sharing a Policy

In some states and through certain insurance carriers, it is possible to share renters insurance with your roommate. If it is allowed in your situation, you want to be sure you’ve considered these benefits and risks before making that decision.

 

Benefits

• You can split the cost of the insurance premium.
• You know for sure that you each have coverage.

 

Risks

• If you end up having to make a claim, the reimbursement check would be made out to both of you, even if the claim was only involving your possessions.
• Any claims made will go on the insurance records for all who are on the policy, regardless of whose claim it was.
• If you add a roommate to the policy, their possessions must be accounted for as well, or the amount covered may not go up. Confirm these details before committing to a policy.

 

Reasons to Have Individual Policies

One reason sharing such a policy is only allowed in some states, and not others are that dividing the benefits can get confusing and mixed up. That fact alone can help you decide whether to get your own policy or not.

Here are some other great reasons for each roommate to have his or her own individual renter’s insurance policy and coverage:

• The premium amounts for these types of policies are generally affordable for an individual.
• If a roommate is on your policy and then steals from you, the loss wouldn’t be compensated for.
• You wouldn’t have to worry about a reimbursement check needing your roommate’s signature for the bank because it would only have your name on it. (If you shared a policy, you would both have to sign the check to receive the funds.)

 

Final Thoughts

Remember, it can be a good idea for your financial coverage and security for each roommate to have his or her own renter’s insurance policy. The landlord’s insurance will only cover certain costs. If water leaks into your apartment from your neighbor’s apartment, you and your roommate(s) will have to replace or repair any damaged belongings, not the landlord. The landlord’s insurance policy can cover the apartment itself, not the items in it that belong to you. Many landlords require that tenants have renter’s insurance, but some don’t. It’s wise for every renter to get it, regardless of the requirements. If each have your own policy, you can have some degree of confidence about unexpected accidents and disasters.

 

To learn more about the benefits of renter’s insurance, contact the professionals with ProtectiveAgency.com at (877) 739-9367. Our licensed, friendly insurance team will be happy to answer any questions you have.