From college students to young professionals, moving in with a roommate is a great way to save on the rent and get a place you’ll love. As you decide who will pay for which utilities and when the kitchen should be cleaned, the issue of renters insurance will likely come up as well. If your roommate’s insurance covers the unit, do you need a policy too? It’s possible to share renters insurance with a roommate, but before you do, get the information you need from Muller Insurance.
Coverage for Everyone
If you’ve assumed renters insurance covers everyone living in a residence, think again. While the property owner’s insurance covers the building you live in, communal spaces, and the unit itself, renters insurance covers personal property, liability, and loss of use. That means the individual policy is tied to the person listed in it rather than everyone living in an apartment. If you purchase a policy, you are protected, but your roommate is not. And you can’t simply claim his or her belongings as your own – in fact, doing so constitutes fraud, a serious crime.
That doesn’t mean that you can’t share a policy with your roommate, however. To do so, you and your roommate (or roommates) will need to be listed on both the apartment’s lease and the insurance policy. This ensures that the provided coverage is available to you and your roommate when needed.
Is Sharing Smart?
The answer to this question depends on your unique situation. Keep in mind that your individual renter’s policy is rated for a single person, which means that if a claim is made, you can access the full value of the policy. However, adding a second person without increasing the coverage level will leave you with less protection. That means that a $10,000 policy only provides $5,000 of coverage per person.
Additionally, when you share a policy, you are taking on your roommate’s risk. Let’s say that a guest slips on a spilled beverage in your roommate’s room and falls, breaking their arm. A liability claim to the policy will remain on your record as well as your roommate’s, and you may face higher insurance premiums in the future.
However, there are good reasons to share coverage with a roommate. If you live with a parent, sibling, or long-term romantic partner, it makes sense to share a policy. You’ll save on premiums and have peace of mind knowing that your shared possessions are protected.
How to Safely Share Renters Insurance
If you’d like to share a policy with a trusted roommate, a few simple steps can ensure you both have a positive experience. These include:
- Creating a home inventory for each roommate
- Listing all names on the policy to make sure everyone is adequately covered
- Seeking a level of coverage that is appropriate to the value of your combined possessions
- Making a plan for how the policy will be managed, including claims, payouts, and communication
In the end, sharing renters insurance can be a good way to save money when you have a strong relationship with your roommate and know they will act responsibly during the time you live together.
Get Coverage for You and Your Roommate
Need more information about renters insurance? Contact Muller Insurance today. We’ll help to determine the right level of coverage for individual and shared policies to help protect your property and stay safe from liability for as little as $205 each year. To learn more, request a quote online or call 201-659-2403 to speak with a representative.