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Roommates Should Not Share Renter’s Insurance

You are probably thinking that since you and your roommate share the cost of rent, utilities, and grocery bill, you might as well share a renter’s insurance policy. Of course, you are trying save money and a few extra dollars can add up, except sharing your renter’s policy might cost you more in the long run.

We will discuss the reasons behind this below:

  1. Cashing a Claim Check Could Be Hard – Let’s say there is water damage from the apartment above you and it ruins your belongings, but not your roommates. You file the claim and a few weeks later you receive the check with your name and your roommates name on it. Now to cash that check you both will need to sign it, even if the proceeds are only supposed to go to one of you. This might not seem like a big deal, but it could be, especially if you have a falling out or one of you moves out.
  2. Removing Your Roommate From the Policy – There are many reasons why you need to remove your roommate from the renter’s policy. Maybe he is moving out on his own accord or maybe you are kicking him out because he never pays his rent. Whatever the reason, you will need to get his written consent before you can remove him as a “named insured.” This could be hard if you are not on speaking terms or if you forgot to take him off after he has already moved out a year later.
  3. Your Personal Belongings Coverage Won’t Automatically Change When You Add Someone To Your Renter’s Policy – So you have a renter’s policy and it offers $25,000 of coverage for your belongings. If you add a roommate to your policy, that limit doesn’t change, it stays at $25,000. Unless your new roommate “lives light” you will want to increase this amount, which in turn will increase your policy premium. So, this begs the question why your roommate doesn’t just take a renter’s policy herself.
  4. You Have To Think About Liability – It’s easy to forget that your renter’s policy provides coverage for accidents and injuries that may occur in your apartment. It also provides coverage for accidents that occur outside your apartment that you, your pet or your property caused. Why is this important? Your roommate is sued because her dog bit a passerby while they were out on a walk. Your insurance rates could be negatively impacted as part of the litigation, if you were to share one renter’s policy.
  5. If You Have More Than One Roommate – If you and three other people are sharing a house, you can forget about splitting a policy. Most cases, only two unrelated adults are going to be allowed to be named on a single renter’s policy. If you are living with more than just one other person, those other people will need to get their own renter’s insurance policies.
  6. Renter’s Insurance Policies Are Cheap A renter’s policy with $25,000 in personal property coverage will cost you about $15 a month. If you increase your personal property that amount will go up but with it being that inexpensive, why wouldn’t you have your own renter’s policy, so you can avoid the headaches we mentioned above.
  7. You May Not Be Able To Share a Policy – Not all policies or states allow renters insurance policies to be shared in any way. So that is the first question you should ask your trusted insurance advisor when you call to get a renter’s policy.

We are not saying that if you are married and rent a home you should have separate renter’s policies. Your spouse is covered on your renter’s policy. If you have any questions or concerns with a renter’s insurance policy don’t hesitate to give Frimark/Keller & Associates a call or send us an email.

Frimark/Keller & Associates have been insuring Schaumburg and the surrounding areas renters since 1910. We are a full serviced Trusted Choice insurance agency. We offer a full array of personal insurance and life insurance products. Call us at 847-907-4520 to discuss your options.


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