Analyzing Pros and Cons of Sharing Renters Insurance with a Roommate

If you share your rented home with a roommate, consider sharing renters insurance as a cost-cutting measure. However, whether you can buy a shared policy with your roommate depends on your insurance provider and your state's insurance laws.

This blog analyses the pros and cons of sharing your renters insurance with a roommate and also provides vital aspects of renters insurance. Continue reading to learn more.

Adding a Roommate to My Renters Insurance Policy

Unrelated roommates sharing a common rented space must buy their individual renters insurance. Still, several insurance providers offer renters insurance policies wherein you may add the roommate as a covered party.

However, discussing the repercussions of shared insurance on your policy with your insurer would be best. Adjustments in certain coverages, such as renters liability insurance and the premium rate, may be required if you buy shared renters insurance. Also, you must know its potential impact on your insurance if the renter vacates the home before the policy expires.

Does Sharing Renters Insurance with My Roommate Make It More Affordable?

For renters insurance, you may have to pay about $ 14 each month for a coverage limit of $15,000 in personal property coverage and $100,000 in liability coverage.

If you add your roommate to your renters insurance policy, you may pay slightly less, but the difference may be a nominal amount given its low premium rates.

Disadvantages of Sharing Renters Insurance with Roommate

While sharing renters insurance with your roommate may have advantages, it has disadvantages, too. They are:

• Shared Claims Claims made by the roommate will be reflected in your insurance history even after you change residence, which may increase your renters insurance rates.

• Increased Liability Coverage Required You may need higher renters liability insurance coverage to accommodate a roommate who entertains guests frequently, leading to higher premiums.

• Compensate for Roommate's Financial Woes Your roommate's inability to pay their share of premiums may force you to pay the entire amount from your pocket.

• Change in Roommate A new roommate means you must change your policy, which may involve removing the previous roommate and adding a new one.

Types of Coverage Needed in Renters Insurance

The coverages that you and your roommate may add to your renters insurance are:

• Personal Property Insurance: Covers repair and replacement costs of your personal belongings by a covered peril
• Renters Liability Insurance: Covers third-party property damage claims for which you are responsible and associated legal costs
• Additional Living Expenses: Covers alternate accommodation costs during extensive damage to your home by a covered peril
• Medical Payments: Covers third-party injuries in your rented home
• Natural Disasters: Covers damages caused by floods, earthquakes, or other natural calamities

Make Your Home a Safe Haven with Promise Insurance Agency

At Promise Insurance Agency, we offer customized and budget-friendly apartment/ renters insurance that ensures comprehensive protection at affordable costs. For more information on our wide range of options to suit your unique needs, contact us today. Call us at (951) 691-8087 to get started.