When you move out of your parent’s house and finally settle into a place of your own, you begin to share the concern of the security of your personal belongings. You never had to worry about your stuff before; someone was almost always home. Now you are living the single life and must address many of the issues adults now face; namely insurance to help protect some of your possessions.

If you have purchased a house, then you would want to seek a Homeowners policy. If you are in a rented home, apartment complex, condo, or even a college dorm you want Renters Insurance.

 

What is renters insurance?

 

Renters insurance is for those who do not own the building they live in but need some confidence that their belongings will be replaced should there be an incident like fire or theft. Coverage can vary from policy to policy, depending on what you need to insure, and also state to state, based on the housing laws of that state.

 

The main thing to know is that your landlord’s insurance policy will not pay for any of your personal loss, even if the peril was beyond your control. You are in the same boat if you are trusting in the Home Owners Association of your condominium complex to cover you if your neighbor starts a fire and damages your property. You are responsible for the coverage of your personal effects.

 

Things change when you have a roommate. If you have purchased a renter’s insurance policy and you decide you need someone to share the expenses of the place you live in, their items will need to have the same type of insurance to be covered. They do not automatically obtain coverage by moving into your place. Your policy will only cover those who you have named in the policy documents.

 

You can choose to put your roommate onto your policy. This has good points, and it has its bad points. Let’s go over each to give you a better understanding of how Renters Insurance works when a roommate is involved.

 

Reasons to share a policy

 

When you are deciding on a roommate, insurance should be one of the first issues you discuss. Determining whether you will share a policy or have individual policies will have ramifications during the policy term and after you and your roommate separate.

Some of the positive aspects of sharing a policy are:

• One policy can save you money overall.
• Adding a roommate does not increase the premium.
• You can have a higher coverage amount and still pay less because of the shared cost.

However, for every single good reason, there are two bad reasons. Trying to save money on your policy may seem like a good idea, but in the long run, it could cost you dearly.

 

Reasons to have separate policies

 

Most insurance agents will recommend that each roommate has their own policy for these reasons:

Your roommate’s claims go on your record. -When you share a policy, any claim your roommate files will be on your record and follow you at renewal and when you decide to get your own policy in the future.

You can be held liable for your roommate’s actions. -If your roommate causes a fire or damage to the property, you can be held liable for their damages.

Problems can arise when a roommate moves out. -If your roommate decides to move out before the lease expires, there can be financial issues if a claim were to arise. Another thing to consider, theft by a roommate is NOT covered by renters insurance.

High dollar possessions of your roommate. –You may be paying for your roommates 80” flat screen or Bose stereo system.

Only you will control your policy. -When a claim is filed, and a check is issued, both names will be on the check. Either of you can cash it. Even if the claim was on your belongings, they could easily cash that check. They could also alter or cancel the policy.

 

Renters insurance is good when its owned by an individual. When the roommate is a brother or sister, boyfriend or girlfriend, or another relative, then it could be more beneficial to have a shared policy. However, it is wise to always discuss the situation and come to an agreement with all participants before move in.

 

Renters insurance is not only for roommates; it is essential coverage for anyone who lives in a rented home. To learn more about renters insurance, contact our team at Protective Agency at (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.