Are Roommates Covered Under Renter’s Insurance?

Splitting the cost of a Cedar Park rental house with a roommate can be a great way to save money on rent, utilities, and more. But what about renter’s insurance? Are roommates allowed to share a single renter’s insurance policy? To respond to that question, we need to be aware of what a renter’s insurance policy does, who it covers, and what the pros and cons are of sharing a policy.

Many landlords require tenants to buy renter’s insurance. The property owner likely has insurance covering the rental property, but that policy does not protect a tenant’s personal property. In case of a fire or burglary, a renter’s insurance policy will help a renter replace personal items that were damaged or stolen, and also protects a tenant against liability claims if in case someone accidentally hurt themselves while visiting the property.

For the most part, individual tenants bring their own renter’s insurance policy. Renter’s insurance often only covers you and your personal property; it does not consist of other people living in the house. Now and then, it is allowed to share renter’s insurance with a roommate. Even though state laws vary, in some states, you can add a roommate to a renter’s insurance policy. In most instances, to share a renter’s insurance policy, each person covered by the policy would need to be listed on the lease as well as listed on the insurance policy itself.

There are certain instances when sharing a renter’s insurance policy makes sense. In case you are sharing a Cedar Park rental home with a relative or with a partner in a stable, longstanding relationship, it may be worth it to help reduce the cost.

But just because you can share renter’s insurance doesn’t essentially mean that you have to. If you share a renter’s insurance policy with a roommate, you also share their insurance history. If your roommate files a claim, that claim will be disclosed on your insurance record as well. That may mean increased insurance rates in the future, even if you were not the one who filed the claim.

There are a few other significant things to think about before sharing a renter’s insurance policy. The cost of renter’s insurance is often based on how expensive your personal possessions are. If one roommate has far more valuable things than the other, then the roommate with the budget furniture will end up paying more than they should in a 50/50 split.

It’s also important to remember that roommate arrangements can change quite suddenly. If one roommate needs to move because of a new career opportunity or other reasons, the cost of the renter’s insurance policy may fall entirely on the remaining roommate. This can lead to paying far more than you should for that policy.

If you are thinking about sharing a renter’s insurance policy with a roommate, it’s important first to consider your individual situation first. Then, have a conversation with both an insurance agent and your roommate. Having an honest conversation with everyone involved can help you make the right choice.

If you’d like to talk to an expert on the matter, contact Real Property Management Advisors and ask one of our Cedar Park property managers. From owners to tenants, we can help. Contact us online or call us at 512-777-2597 today.