Renters Insurance and Roommates: Are My Roomies Covered?

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That’s a good question to ask before you move in together! You already know renters insurance is a good idea or you might not be reading this article. Some insurance companies allow both roommates to be named insureds on a renters insurance policy; however, Shelter believes it’s best if you and your roommate each have your own renters insurance policy. Here’s why…

Policy Limits
Renters insurance policies come with different policy limits, and the more stuff you need covered, the higher your limit will need to be—but how much do you need? It’s a good idea to factor in the cost of replacing everything you own—clothes/underwear, electronics, computer equipment, dishes, bedding, towels, etc. If you take a out a policy with your roommate for $10,000 and a fire destroys your apartment, you will have to split the money to cover all your possessions. On the other hand, if you have a policy in your name alone with a $10,000 limit, you could use that entire amount to replace your personal belongings.

Claims and Insurance History
What if you are responsible but your roommate isn’t? Or what if your roommate is a little bit accident prone and causes a fire that damages the building, including other tenants’ property? That could adversely affect your insurance history, which is hard when you’re young and trying to build a good insurance history to keep your future rates as manageable as you can.

In addition, if you do have to file a claim, the check for your damages will likely be made payable to both of you, so if most of the damage was done to your items, you and your roommate will both have to endorse the check before it can be deposited.

Renters insurance is very inexpensive—at Shelter, policies start at as little as $10 a month—so if you’re trying to share expenses, stick to splitting rent and utilities.

• First-Time Renters

  

  There’s a lot to know when you’re renting for the first time. Here’s a place you can go to get a lot of questions answered.

  Go There

• Mid-Life Renters

  

  Renting isn’t just for college students and recent grads. There are lots of good reasons to rent in your 30s and 40s.

  See Reasons

• Renting in Retirement

  

  Downsizing your home? Don’t want home maintenance in retirement? Need to move a parent to an assisted living facility? Renters insurance is important in all of these scenarios.

  Here’s Why