Many landlords require tenants to buy renter’s insurance. The property owner may have insurance that protects 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 assist a renter in recovering personal items that have been damaged or stolen, and also protects a tenant against liability claims when somebody harms themselves while visiting the property.
In many cases, individual tenants bear their own renter’s insurance policy. Renter’s insurance often only covers you and your personal property; another person living in the house is not included. However, renter’s insurance may also be shared with a roommate. Even though the state laws differ, in several states, you can add a roommate to a renter’s insurance policy. In general, to split a renter’s insurance policy, each person covered by the policy would have to be listed on the lease and also be included on the insurance policy itself.
There are some instances where sharing a renter’s insurance policy makes sense. If you are sharing a Washington Township rental home with a relative or with a partner in a stable, longstanding relationship, it could be sufficient to reduce the cost.
However, even though you can split renter’s insurance, that doesn’t necessarily mean you will. 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 would also exist on your insurance record. That could mean increased insurance rates someday, even though you were not the person who filed the claim.
There are many different crucial things to bear in mind before sharing a renter’s insurance policy. The cost of renter’s insurance always depends on how costly your personal belongings 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 significant to note that roommate arrangements can change at any time. Let’s say your roommate decides to transfer due to a new job position or other purposes, the expense of the renter’s insurance policy may be shouldered by the remaining roommate. It can make you spend a lot more than you should on that policy.
If you are considering splitting a renter’s insurance policy with a roommate, it is significant first to understand your individual situation. At that point, speak to both an insurance agent and your roommate. Having a sincere discussion with those concerned will help you make the best decision.
If you’d like to talk to an expert on the matter, contact Real Property Management Silverstone and ask one of our Washington Township property managers. From owners to tenants, we can help. Contact us online or call us at 586-992-6419 today.