Can I share renters insurance with my roommate?
You are not legally required to have renters insurance when renting, but landlords can require renters to have renters insurance. If you’re renting with a roommate, the insurance will not cover your roommate’s portion unless both your names are on the rental insurance policy.
However, if two people buy rental insurance together, although the price will be cheaper, if there is a problem, the subsequent claims and coverage will become complicated, so it is recommended that you buy your insurance policies separately. There are four reasons:
1. A claim record leaves a record for the policyholder
If you are the policy owner, but your roommate files a claim, it will still be recorded in the policy owner’s (that is, you) CLUE report (Comprehensive Loss Underwriting Exchange, Comprehensive Loss Underwriting Exchange), into your insurance Record. Having a claims history usually results in higher insurance rates.
And if you or your roommate agrees to the claim made by the insurance company, the claim amount will usually be handed over to the policyholder, then you and your roommate need to discuss the distribution of the claim amount, which is likely to cause unpleasant situations.
2. Rent Insurance’s Liability Protection Extends Beyond Rent
Renters insurance also includes a portion of liability coverage, which protects people’s rights outside the home. It also means that if you include your roommate in your renter’s insurance, then you are partially responsible for the roommate’s actions, and your roommate’s claims may affect your CLUE report.
3. You and your roommate have different coverages
Each policy has a maximum coverage limit. If your policy has a personal property coverage of $25,000, then you both will be covered up to a maximum of $25,000, not $25,000 each.
If something goes wrong, you and your roommate’s claims will conflict. Generally speaking, the total value of personal belongings between you and your roommate is different, there must be more or less, for example, your roommate has a jewelry collection but you don’t. If something goes wrong and the insurance company needs to pay, the TA may want to get more claims, but you may not think so. And how to distribute the amount of compensation in hand is also a more troublesome problem.
4. If the roommate moves, the policy also needs to remove the TA’s name
If you or your roommate needs to move, your policy will need to remove the name of the person who left. If your roommate leaves before the end of the policy term, you may need to reapply for coverage or renew your existing policy, and you’ll also need to negotiate new rates and coverage with your insurance company, adding a lot of hassle.
However, if you have a very good relationship with your roommate, and you jointly own most of the furniture and other items in the rented house, then it may be a good idea for you to choose shared renters insurance.
If you decide to share renters insurance with roommates, here are the steps to follow in advance:
1. Assess your roommate.
Is your roommate a stranger you just met, or a long-time friend? Can you trust them to pay on time and split the cost of claims fairly? You have to think about this in advance.
2. Take inventory of what you have.
Before purchasing renters insurance, it is recommended that you do a video inventory of everyone’s belongings, documenting what is in each room and all shared spaces. This will help you and your roommate determine the value of the item and the required insurance coverage. Also, know what’s in the house so you can better determine what you need to claim when you claim it later, and you can also provide evidence.
3. Have an honest discussion with your roommate.
“What is the right budget for us? What are we looking for in terms of coverage?” These are questions you need to discuss and confirm with your roommate.
Another question to consider is whether one of you owns more property than the other: If a fire destroys the house and everything inside, how will the payout be divided? It is recommended that you discuss these issues clearly in advance.
4. Talk to the insurance company.
After talking with your roommates, you can go and negotiate with the insurance company to get their opinion on how much coverage is the best option. You can also ask them if they have relevant discounts, and if they are bundled with auto insurance, general insurance companies will provide relevant discounts.
Buy rental insurance to protect your rights and save premiums by comparing prices
When renting a house, in addition to paying attention to the details of the rental contract, purchasing rental insurance is also an important way to protect personal rights and interests. If the tenant causes the kitchen to catch fire, the landlord will not be responsible for the cost of repairing the table and chairs, and it is impossible to guarantee the damage or theft of the tenant’s personal belongings. Therefore, renters’ insurance is necessary, and the insurance can also cover the additional expenses in the event of an eviction. living expense. The following are the rental insurance companies most commonly chosen by American tenants,
