Are Roommates Covered Under Renter’s Insurance?

Sharing the cost of a Brooklyn rental house with a roommate can be a great way to save money on rent, utilities, and more. But what about renter’s insurance? Can roommates share a single renter’s insurance policy? To answer that question, we need to understand 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 the event 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 should someone injure themselves while visiting the property.

For the most part, individual tenants bring their own renter’s insurance policy. Renter’s insurance usually only covers you and your personal property; it does not include other people living in the house. But it is occasionally possible to share renter’s insurance with a roommate. Even if state laws vary, in some states, you can add a roommate to a renter’s insurance policy. In most cases, 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 times when sharing a renter’s insurance policy makes sense. If you are sharing a Brooklyn 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 automatically mean that you should. 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 reflect on your insurance record as well. That may mean increased insurance rates in the future, even though you were not the one who filed the claim.

There are a few other important things to think about before sharing a renter’s insurance policy. The cost of renter’s insurance is usually 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 bear in mind that roommate arrangements can change quite unexpectedly. 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 completely on the remaining roommate. This can lead to spending 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, talk to both an insurance agent and your roommate. Having a truthful 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 New York Gold and ask one of our Brooklyn property managers. From owners to tenants, we can help. Contact us online or call us at 347-905-5770` today.